Yahoo Finanza E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May Need to Test 12187.00 Before Resuming Rally
June E-mini NASDAQ-100 Index futures are under pressure early Tuesday morning, following last week’s impressive technical bounce. The tech-heavy index gained 6.8% on the week, ending positive after seven continual weeks of losses. Nonetheless, the market is still off its record high by about 25.2%.
Today is the first trading day of the week following Monday’s U.S. Memorial Day holiday. The inability to follow-through to the upside following last week’s rally suggests investors are still trying to determine whether the bottom is in or if the market still has to build a support base. Based on historical bear markets, it takes time to regain investor confidence.
At 08:02 GMT, June E-mini NASDAQ-100 Index futures are trading 12675.00, down 135.00 or -1.05%. On Friday, the Invesco QQQ Trust ETF (QQQ) settled at $309.24, up $9.91 or +3.31%. Based on today’s early price action, it may open lower.
US Economic Reports Set the Tone
Looking ahead, we could see a cautious trade ahead of Wednesday’s ISM Manufacturing PMI and JOLTS Job Opening reports.
Investors are also eyeing Friday’s Non-Farm Payrolls report. The Non-Farm Employment Change is expected to show the economy added 325K jobs in May. Down from the previously reported 428K. The Unemployment Rate is expected to dip to 3.5% from 3.6%. Average Hourly Earnings are forecast to rise 0.4%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The next main top target comes in at 13555.25. A trade through 11491.25 will change the main trend to down.
On the upside, the nearest resistance is a 50% level at 12894.75, followed by a resistance zone at 13226.00 to 13380.00.
On the downside, the nearest support is a 50% level at 12523.25. This is followed by a short-term pivot at 12187.00.
Daily Swing Chart Technical Forecast
Trader reaction to 12677.75 is likely to determine the direction of the June E-mini NASDAQ-100 Index on Tuesday.
Bullish Scenario
A sustained move over 12677.75 will indicate the presence of buyers. Taking out the 50% level at 12894.75 will indicate the buying is getting stronger. This could trigger an acceleration into the resistance zone at 13226.00 to 13380.00. This is the last potential resistance before the 1355.25 main top.
Bearish Scenario
A sustained move under 12677.75 will signal the presence of sellers. The first downside target is 12523.25. Taking out this level could trigger an acceleration into the key pivot at 12187.00. Since the main trend is up, buyers could come in on a test of this level.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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