E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index Ready to Test 14821.25 – 15264.64

June E-mini NASDAQ-100 Index futures are trading flat in the pre-market session on Wednesday as investors continue to digest the Fed’s latest assessment on inflation and interest rates.

Last week, the Fed raised interest rates for the first time since 2018 and forecast a plan to hike rates by a quarter point at each of the remaining six meetings of 2022. But on Monday, Fed Chair Powell ramped up the rhetoric even more, promising to take tough action on inflation.

At 07:23 GMT, June E-mini NASDAQ-100 Index futures are at 14649.00, down 5.00 or -0.03%. On Tuesday, the Invesco QQQ Trust Series 1 ETF (QQQ) settled at $356.96, up $6.88 or +1.97%.

Investors don’t seem to be too concerned about surging bond yields, a hawkish Fed and an intensifying war between Russia and Ukraine. Value may be the key price driver since technology shares were relatively cheap last week with the index hitting its lowest level since May 2021.

Apple Inc, Microsoft Corp, Amazon.com Inc, Alphabet Inc and Tesla Inc gave the biggest boosts to the NASDAQ Composite on Tuesday.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through Tuesday’s high at 14690.75 will signal a resumption of the uptrend. A move through 12942.50 will change the main trend to down.

The short-term range is 15261.25 to 12942.50. The market is trading on the bullish side of its retracement zone at 14375.50 to 14101.75, making it support.

The main range is 16700.00 to 12942.50. Its retracement zone at 14821.25 to 15264.75 is the next objective.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to 14654.00

Bullish Scenario

A sustained move over 14654.00 will indicate the presence of buyers. Taking out 14690.75 will indicate the buying is getting stronger. This could trigger a surge into the main 50% level at 14821.25.

Sellers could come in on the first test of 14821.25, but overcoming it could trigger an acceleration into the main Fibonacci level at 15264.75.

Bearish Scenario

A sustained move under 14654.00 will signal the presence of sellers. It won’t change the main trend to down, but could trigger the start of a 2-3 day correction with a series of targets lined up at 14375.50, 14101.75 and 13816.50.

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

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.