E-mini NASDAQ-100 Index

E-mini NASDAQ Settles on Weak Side of Main Retracement Zone

June E-mini NASDAQ-100 Index futures fell sharply on Wednesday as technology stocks extended their sell-off for a second straight day on mounting concerns over aggressive actions by the Federal Reserve to fight inflation, following the release of the minutes from the March monetary policy meeting.

On Wednesday, the June E-mini NASDAQ-100 Index settled at 14505.25, down 322.75 or -2.23%. The Invesco QQQ Trust Series 1 ETF (QQQ) finished at $353.17, down $7.93 or -2.20%.

According to minutes of the March 15-16 policy meeting, Fed officials “generally agreed” to cut up to $95 billion a month from the central bank’s asset holdings as another tool in the fight against surging inflation, even as the war in Ukraine tempered the first U.S. interest rate increase.

In stock related news, Tesla Inc, Meta Platforms Inc, Apple Inc, Amazon.com Inc, Alphabet Inc and Microsoft Corp fell between 1.85% and 4.17%.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Wednesday when sellers took out the last swing bottom at 14725.00. A trade through 15198 will change the main trend to up.

The main range is 16700 to 12942.50. The index closed on the weak side of its retracement zone at 14821.25 to 15264.75, making it resistance.

The short-term range is 12942.50 to 15268.75. Its retracement zone at 14105.50 to 13831.00 is the primary downside target.

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 14505.25.

Bearish Scenario

A sustained move under 14505.25 will indicate the presence of sellers. Taking out 14394.75 will indicate the selling pressure is getting stronger with the short-term 50% level at 14105.50 the first downside target. This is followed by the short-term 61.8% level at 13831.00.

Look for aggressive counter-trend buyers on the first test of 14105.50 – 13831.00. They are going to try to form a secondary higher bottom.

Bullish Scenario

A sustained move over 14505.25 will signal the presence of counter-trend buyers. If this move creates enough upside momentum then look for a surge into the main 50% level at 14821.25. Since the main trend is down, look for sellers on the first test of this level.

Overcoming 14821.25 will indicate the short-covering is getting stronger.

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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.