E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Dragged Lower by Amazon Weakness, Rate Hike Worries

June E-mini NASDAQ-100 Index futures are trading lower at the mid-session on Monday on volatile trading. For a second session, prices are being dragged down by Amazon.com. The bearish price action indicates investors are focusing squarely on the two-day Federal Reserve meeting where policymakers are widely expected to raise interest rates.

At 17:13 GMT, June E-mini NASDAQ-100 Index futures are trading $312.07, down $1.18 or -0.38%. The Invesco QQQ Trust ETF (QQQ) is at $312.07, down $1.18 or -0.38%.

Amazon.com slid 3.2%, adding to a 14% drop on Friday after a gloomy quarterly report. Apple dipped 1.3% as the iPhone maker faced a possible hefty fine after EU antitrust regulators charged it with restricting rivals’ access to its technology used for mobile wallets.

However, Facebook-parent Meta Platforms climbed 2.8% after falling 9.8% last month, while Microsoft, Tesla and Nvidia rose between 0.5% and 1.5% after sharp declines in April.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A move through 14298.00 will change the main trend to up. A trade through the intraday low at 12742.75 will signal a resumption of the downtrend. This will put the March 5, 2021 main bottom at 12179.50 on the radar.

The minor trend is also down. A trade through 13583.75 will change the minor trend to up. This will shift momentum to the upside.

The minor range is 13583.75 to 12742.75. Its pivot at 13163.25 is the nearest resistance.

Daily Swing Chart Technical Forecast

Trader reaction to 12852.00 will determine the direction of the June E-mini NASDAQ-100 Index into the close on Monday.

Bearish Scenario

A sustained move under 12852.00 will indicate the presence of sellers. Taking out 12742.75 will indicate the selling pressure is getting stronger. This could trigger an acceleration into 12179.50.

Bullish Scenario

A sustained move over 12852.00 will signal the presence of buyers. If this creates enough upside momentum then look for a surge into the pivot at 13163.25. Overtaking this level will indicate the buying is getting stronger with 13583.75 the next key resistance.

The chart pattern suggests the minor top at 13583.75 is a potential trigger point for an acceleration to the upside.

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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.