E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Watch for Light Volume Ahead of Fed Meeting

June E-mini NASDAQ-100 Index futures advanced on Monday as investors prepared for a busy earnings week while turning a hopeful eye toward several U.S. states that are relaxing shutdown restrictions put in place to curb the spread of the COVID-19 pandemic. The technology-based index has clawed back nearly 70% of the ground it lost since the coronavirus crisis brought the economy to a grinding halt.

On Monday, June E-mini NASDAQ-100 Index futures settled at 8818.25, up 49.25 or +0.56%.

In stock related news, Apple Inc. slipped 0.2% following a report indicating the company was postponing a production ramp up for its flagship iPhone.

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 8966.75 will signal a resumption of the uptrend, while a move through 8342.00 will change the main trend to down.

The minor trend is also up. This is helping to generate upside momentum. A trade through 8498.25 will change the minor trend to down.

The minor range is 8966.75 to 8342.00. Its 50% level or pivot at 8654.25 is support.

The main range is 9780.50 to 6628.75. Its retracement zone at 8576.50 to 8204.50 is major support. This zone is controlling the longer-term direction of the index.

Short-Term Outlook

It was a good start to the week with the index picking up where it left off on Friday with a solid rally from the opening on Sunday night. If this upside momentum continues into Tuesday then 8966.75 should be an easy target.

With the Fed starting a two-day meeting on Tuesday, light volume could prevent a breakout over 8966.75. However, if the Fed delivers more positive news on Wednesday then look for a breakout over this level with 9006.75 the next upside target.

On the downside, support is staggered at 8654.25, 8576.50 and 8498.25.

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.