June E-mini NASDAQ-100 Index futures are trading higher shortly after the mid-session on Thursday as investors rode the wave created by strong earnings from Meta Platforms. The momentum spread to battered technology and growth stocks, which offset worries about a contraction in the U.S. economy in the first quarter.
The Facebook parent rose 14.3% after it reported a stronger-than-expected profit and the social-networking site eked out user growth.
US Economic News
A U.S. Commerce Department report showed gross domestic product fell at a 1.4% annualized rate last quarter, after clocking 6.9% growth in the fourth quarter. Economists polled by Reuters had forecast the economy growing at a 1.1% rate.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 12801.50 will signal a resumption of the downtrend. A move through 14298.00 will change the main trend to up.
The minor trend is also down. A trade through 13583.75 will change the minor trend to up. This will shift the momentum to up.
The minor range is 13583.75 to 12801.50. It is currently trading on the strong side of its pivot at 13192.50, making it support.
The short-term range is 15268.75 to 12801.50. If the minor trend changes to up then its retracement zone at 14035.25 to 14326.25 will become the next upside target.
Daily Swing Chart Technical Forecast
The direction of the June E-mini NASDAQ-100 Index into the close on Thursday will be determined by trader reaction to 13192.50.
A sustained move over 13192.75 will indicate the presence of buyers. The next target is the minor top at 13583.75. Taking out this level will change the minor trend to up and could create the momentum needed to challenge the short-term 50% level at 14035.25.
A sustained move under 13192.75 will signal the presence of sellers. This could lead to a retest of this week’s low at 12801.50. If this price fails then look for the selling to possibly extend into the March 5, 2021 main bottom at 12179.50.