E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Settled on Bullish Side of Former Resistance Zone

June E-mini NASDAQ-100 Index futures climbed on Monday, jumping more than 1% as a retreat in U.S. Treasury yields helped lift expensive stocks in sectors such as technology as investors attempted to gauge the path of U.S. inflation. The benchmark 10-year Treasury bond hit a two-week low, which buoyed the richly-valued growth stocks. Tech giants Apple and Microsoft were each up about 2% on the day.

At 20:53 GMT, June E-mini NASDAQ-100 Index futures are trading 13652.50, up 247.50 or +1.85%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12954.25 will change the minor trend to down.

The minor trend is also up. The next upside target is the minor top at 13818.00. Taking out this level will indicate the buying is getting stronger. The minor trend will change to down on a move through 13356.50. This will shift momentum to the downside.

The short-term range is 14064.00 to 12915.00. The index is currently trading on the strong side of its retracement zone at 13625.00 to 13489.50. This area could develop into support.

The main range is 12200.00 to 14064.00. Its retracement zone at 13132.00 to 12912.00 is key support. It is controlling the near-term direction of the index, having stopped the selling pressure at 12954.25 on May 19 and at 12915.00 on May 13.

Short-Term Outlook

The direction of the June E-mini NASDAQ-100 Index over the short-run is likely to be determined by trader reaction to the short-term retracement zone at 13625.00 and 13489.50.

Look for an upside bias on a sustained move over 13625.00. If this move creates enough upside momentum then look for a surge into the minor top at 13818.00.

The first sign of weakness will be a break under 13625.00, but a downside bias could develop on a sustained move under 13489.50. This would change the trend to down, but it could lead to a normal 50% to 61.8% retracement of the rally from 12915.00 to 13686.00.