Nasdaq 100 Bad Follow-Through to Biggest Bull Body Since October

Market Overview: NASDAQ 100 Emini Futures

The NASDAQ Emini futures week is a doji bull bar with a long tail above. It is another new all-time high close above June 10 high, but a bad follow-through to biggest bull body since October.

On the daily chart, the market made the measured-move target mentioned in the report from a couple of weeks ago and is pulling back.

The monthly chart is still a bull trend bar with a prominent tail above. Last week’s report had said that at least one of the last two weeks of the month will be doji/bear bars since the monthly bar had already become big enough. This week met that expectation.

Next week is the last week of the month. It is likely next week will be a High-1 buy signal bar on the weekly chart, such that its high will be lower than the high of this week so as to not increase the range of the monthly bar.

NASDAQ 100 Emini futures

The Weekly NASDAQ chart

• The week is a doji bull bar with a long tail above.
• Bulls needed a good follow-through bar like the bar of November 6 that followed the big bar of October 30.
• Instead, bulls got a doji reversal bar.
• To their credit, bulls still managed a close above last week’s high.
• Next week will likely trigger the sell signal bar by going below it or be an inside bar.
• For the reasons mentioned in the summary about the size of the monthly bar, it is less likely for next week to be a bull trend bar or go above this week’s high.

The Daily NASDAQ chart

• This was a short trading week as Wednesday was a trading holiday.
• Monday was a big bull trend bar with a tail above. It was a good follow-through bar to the bull bar from last Friday. As mentioned before, big bars usually have bad follow-through. Tuesday was a doji inside bar.
• Thursday was a big outside down bar with a bigger tail above and a tail below. It was the first pullback since two Fridays ago.
• Friday was a doji bear bar with a close above the low of Thursday.
• Bears need bear bars closing below prior bear bars like they were doing in March, and April.
• As mentioned in the summary, the market made the measured-move target of the march high close and April low close. While the market went above the measured-move target, it did not close above it.
• Next week the market will likely trigger the Friday buy signal bar. Bulls want to close above the measured move target, while bears want to prevent a new higher close.

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