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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Investors Gunning for New All-Time High

James Hyerczyk

June E-mini NASDAQ-100 Index futures are trading nearly flat on Thursday as investor take a breather after posting solid gains the previous session. We could be looking at some light-profit-taking or position-squaring ahead of Thursday key European Central Bank announcement and the release of the U.S. Non-Farm Payrolls report on Friday.

On Wednesday, June E-mini NASDAQ-100 Index futures settled at 9684.75, up 37.00 or +0.38%.

In the cash market, the NASDAQ-100 Index, which tracks the 100-largest nonfinancial companies in the NASDAQ Composite, rose 0.5% to close 0.3% below a record set on February 19. The index has rallied more than 43% from an intraday low set on March 23. The NASDAQ Composite, meanwhile, is just 1.58% below its all-time high.

Advancing issues outnumbered declining ones on the NASDAQ by a 2.26-to-1 ratio. The NASDAQ Composite recorded 96 new highs and four new lows.

Lyft Inc. jumped 8.7% after the ride-sharing platform reported rides increased 26% in May. Microchip Technology Inc. surged 12.3% after the chipmaker raised its forecast for current-quarter sales and profit.

Teleconferencing firm Zoom Communications Inc. nearly doubled its annual sales expectations, but also reported a sharp rise in costs. Its shares were up 7.6%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 9728.25 will signal a resumption of the uptrend. Taking out the February 20 main top at 9780.50 could trigger an acceleration to the upside.

A trade through 8847.00 will change the main trend to down. This is highly unlikely, but the prolonged move up in terms of price and time, has put the index inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 9172.50 will change the minor trend to down. This will shift momentum to the downside.

Short-Term Outlook

The near-term direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the all-time high at 9780.50.

At this point in the rally, buyers are either going to take out 9780.50 and trigger an acceleration to the upside, or they are going to start taking profits, perhaps fueling the start of a near-term correction.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire