Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures week is an inside bull trend bar with small tails. The market had no CC close below Nov 2021 bull body gap. Note – CC is an abbreviation for consecutive.
On the daily chart, the market had a weak two-legged pullback to the exponential moving average (EMA).
So far, the month is a big bear bar with a prominent tail below. As was mentioned last week, there would likely be buyers below prior trend bull bars (February). Also, the monthly bar had already been the size of an average month bar with last week’s move, so it was more likely to have sideways price-action than continue down.
Bulls want next Monday and Tuesday to be strong bull bars so there is an even bigger tail on the monthly chart. Bears want the opposite. The weak price action on the daily chart makes it more likely that the bulls will be disappointed.
NASDAQ 100 Emini futures
The Weekly NASDAQ chart
- The week is an inside bull trend bar with small tails.
- Bears needed a follow-through bear bar to the big bear of last week.
- They needed it to convince traders that the bull gap from November 2021 is closed.
- Instead, the market had a good bull bar ending with a close just above the EMA.
- A few problems for the bulls with the bull bar this week is that:
- it is an inside bar – which means it did not trap sellers who would sell below last week’s bar, although the sell the close bears of last week are trapped.
- it is a big bar for a buy signal bar – more risk for buyers buying with stop entry above.
- Most of the body of the bar is below the EMA. Usually such a bar is considered sell the close than buy the close.
- So there are likely more sellers above than buyers.
The Daily NASDAQ chart
- The market had pretty good bull days on Monday and Tuesday but turned into a weak rally for the rest of the week with trading range price-action.
- It looks like a 2-legged pullback to the EMA and closed below the EMA.
- This will likely lead to a 2nd leg down corresponding to the bear breakout of last Wednesday, Thursday and Friday.
- Bears first want to target the close of last Friday as there were likely bears who sold the close.
- The next one is the close of 1/4/2024 – which was a bear microchannel that was never sufficiently tested.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
