E-mini NASDAQ-100 Index

E-mini NASD-100: Sellers Targeting March Bottom at 12942.50

June E-mini NASDAQ-100 Index futures are down sharply shortly before the close on Friday with the tech-heavy index in a position to post its third straight week of losses. Sellers were pounding technology stocks on increased certainty around aggressive near-term interest rate hikes and general concerns ahead of Big Tech earnings next week.

At 17:55 GMT, June E-mini NASDAQ-100 Index futures are trading 13442.00, down 286.25 or -2.09%. The Invesco QQQ Trust ETF (QQQ) is at 325.41, down 8.74 or -2.62%.

Weak Outlook for Tech Shares Ahead of Major Earnings Reports

The prospect of a more hawkish Fed has led to a rocky start to the year for the tech-weighted NASDAQ Composite. The trend is more pronounced in tech and growth shares whose valuations are more vulnerable to rising bond yields. The NASDAQ is down 17.9% in 2022.

Earnings are due next week for the four biggest U.S. companies by market capitalization:  Apple, Microsoft, Amazon and Google-parent Alphabet.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 14298.00 will change the main trend to down. A move through the intraday low at 13435.75 will reaffirm the downtrend.

The short-term range is 12942.50 to 15268.75. The index is currently trading on the weak side of its retracement zone at 13831.25 to 14105.75, making it resistance.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index into the close on Friday will be determined by trader reaction to 13728.25.

Bearish Scenario

A sustained move under 13728.25 will indicate the presence of sellers. Taking out the intraday low at 13435.75 will indicate the selling pressure is getting stronger. If this creates enough downside momentum then look for an acceleration to the downside with 12942.50 the next major downside target.

Bullish Scenario

Overtaking 13728.25 will signal the return of buyers. This could create enough upside momentum to challenge the short-term retracement zone at 13831.25 to 14105.75. This is the last potential resistance before the 14298.00 main top.

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Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.