Market Overview: NASDAQ 100 Emini Futures

The NASDAQ Emini futures market had a weak doji sell signal pause after strong move up of last week.

Since this week is a bad signal bar, it will likely get bought. As last week’s report mentioned, there are targets above.

NASDAQ 100 Emini futures

This week’s candlestick is a doji sell signal bar with a long tail below.
It represents a pause up in the 2^nd leg up since March.
The next bull target is the close of Week of 8/8 at 13569.75 – the last bull bar of the micro channel up in August. That was a reasonable buy the close bar, and there are trapped bulls up there.
The market is close enough to this target that it should reach it.
The 2^nd leg up since March is also a 3 bar bull micro channel (low of each bar higher than prior bar low) which means there will likely be another leg up after a pullback even if for one bar.
There is also a body gap created by the week of 1/30 – There has not been a bear close after the market broke above the close of 1/30 that overlaps with the body of 1/30.
If the market goes sideways for a few weeks, bears will try to get a leg down like they did at the end of the first leg up in early February.
As strong as the move up since October, since the reversal did not start with a bull signal bar, this is still likely a minor reversal, and the market may have to test back down again even if after 6-10 months.

Friday was a trading holiday. Thursday’s NQ candlestick is a strong outside up bull bar with a tail below, closing below Wednesday’s high.
Monday was a bull inside bar to last Friday. Tuesday and Wednesday were bear days although with tails below.
Two weeks ago, the market was in breakout mode (BOM) on the daily chart and then last week the market broke above.
Last week also reached the Measured Move (MM) target of 13150.5 shown on the chart.
This week the market tested the breakout area and is trying to reverse.
The breakout last week seemed more like a vacuum move up. Last week was the last week of the month, so it seemed like the buying was to make the month close strongly.
The move up last week will likely produce another leg up.

You can access all weekend reports on the Market Analysis page.