E-mini NASDAQ-100 Index

E-mini NASD-100: Still Testing Short-Term Retracement Zone

June E-mini NASDAQ-100 Index futures are edging higher early Thursday after posting a lower-close the previous session. The tech-heavy index fell on Wednesday as streaming giant Netflix slumped after shedding subscribers for the first time in a decade, stoking worries among investors about their bets on high-growth companies set to report results.

At 03:10 GMT, June E-mini NASDAQ-100 Index futures are trading 14106.75, up 102.00 or +0.73%. On Wednesday, the Invesco QQQ Trust Series 1 ETF (QQQ) settled at $341.05, down $5.21 or -1.50%.

In stock-related news, Netflix Inc plunged 36.6% and was set for its worst day since October 2004, as it blamed inflation, the Ukraine war and fierce competition for the subscriber loss and predicted deeper losses ahead, Reuters reported.

Megacap stocks including Amazon.com Inc, Tesla and Meta Platforms Inc fell between 2.3% and 5.3%, while streaming peers Walt Disney, Roku and Warner Bros Discovery dropped between 4.5% and 8.3%, according to Reuters.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on April 18.

A trade through 15198.00 will change the main trend to up. A move through 13729.50 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor trend is up. It changed to up on Wednesday when buyers took out 14296.25. This confirmed the shift in momentum.

The short-term range is 12942.50 to 15268.75. The index is currently testing its retracement zone at 14105.75 to 13831.00. This zone is controlling the near-term direction of the index.

The minor range is 15198.00 to 13729.50. Its 50% level at 14539.75 is the nearest resistance.

The main range is 16700.00 to 12942.50. Its retracement zone at 14821.25 to 15264.75 is the major resistance.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index early Thursday is likely to be determined by trader reaction to 14105.75.

Bullish Scenario

A sustained move over 14105.75 will indicate the presence of buyers. The first upside target is 14298.00. Taking out this level could trigger a surge into 14539.75. This is followed by another minor top at 14642.25 and the main 50% level at 14821.25.

Bearish Scenario

A sustained move under 14105.75 will signal the presence of sellers. The first downside target is the short-term Fibonacci level at 13831.00, followed by the main bottom at 13729.50.

A trade through 13729.50 will reaffirm the downtrend. It could also trigger the start of an acceleration to the downside with 12942.50 the next major target price.

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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.