Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures week is a big bear bar with a good body and prominent tails above and below, closing near the weekly exponential moving average (EMA). It is the first close at weekly ema since April. It is also a good enough follow-through bar that there should be a second leg down.
On the daily chart, the market had a big bear day with follow-through as the second leg of the move down from last week.
The monthly chart is now a big bear reversal bar with a long tail above, and a small tail below. There are 3 more days left in the month. This month is again already a big bar, so it is likely the first half of next week is more sideways to up than down big, so as to not extend the range of the bar (although the Friday daily bar is a bad buy signal bar – a bull inside bar with big tail above, so it’s hard to imagine buyers above).
NASDAQ 100 Emini futures
The Weekly NASDAQ chart
- The week is a big bear bar with almost equal sized body, tail above and below, closing near weekly EMA.
- It is a good enough follow-through bar with a close far enough below last week’s low that there should be a second leg down, likely after a pullback.
- The pullback is likely because the market is at the weekly EMA where there are usually buyers.
- Bulls do not want another bear bar next week because that will make it more likely that the move down will be multi-legged , as opposed to just two legs.
The Daily NASDAQ chart
- Based on the bear micro-channel last week, last week’s report had said that there should be a close below the close of Friday, even if there is a pullback.
- Monday is a pullback day. Tuesday is an L1 sell signal bar. Wednesday is a big bear trend bar closing far below last Friday.
- By Wednesday, the market was at the weekly EMA. Thursday is a follow-through bar to the big bear bar of Wednesday with a close near its low below the weekly EMA.
- Friday is a bull inside bar with a tail above, closing just above the weekly EMA.
- Last Friday, the market was at the support line with the low close of 6/24. When the market broke out below that neckline, one bear target was the Measured Move of that low close with the high close of 7/16 (shown by the two red lines on the chart) at 18903, which the market reached on Thursday.
- At this point, the low close of 6/24 is likely resistance.
- The market has also closed the open bull body gap with the high close of 5/28 by having a close below it on Thursday.
- There are a few other open bull body gaps slightly below that will also likely close, even if there is a pullback.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
Thanks for the report Rajesh. Good stuff