NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13882.25, Weakens Under 13788.25

June E-mini NASDAQ-100 Index futures are trading sharply higher on Monday in a move that tends to suggests investors are ignoring the Wall Street adage, “sell in May and go away”. A mantra that calls for taking off risk from May to October, a period where the market is more prone to sell-offs historically.

At 14:37 GMT, June E-mini NASDAQ-100 Index futures are trading 13904.00, up 54.00 or +0.39%.

On the data front, IHS Markit data showed U.S. manufacturing activity grew at a record-high speed last month with April’s Manufacturing Business Activity PMI Index rising to 60.5, matching expectations from economists polled by Dow Jones.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The man trend is up according to the daily swing chart. A trade through 14064.00 will signal a resumption of the uptrend. Taking out 13700.50 will change the main trend to down.

The minor trend is also up. A trade through 13818.50 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 13700.50 to 14064.00. The index is currently trading on the strong side of its pivot at 13882.25.

The second minor range is 13512.50 to 14064.00. Its pivot at 13788.25 is potential support.

The short-term range is 12609.75 to 14064.00. If the main trend changes to down then its retracement zone at 13334.50 to 13163.50 will become the primary downside target area.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 13882.25.

Bullish Scenario

A sustained move over 13882.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 14064.00. Taking out this high could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 13882.25 will signal the presence of sellers. The first downside target is the pivot at 13788.25, followed by the main bottom at 13700.50.

Taking out 13700.50 will change the main trend to down. This could trigger the start of a correction into the short-term retracement zone at 13334.50 to 13163.50.

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.