Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures week is a non-climactic bear bar with tails. The bull body gap with March 2022 closed this week. This is also the third consecutive bear bar, the first time since early December. Given the three bear bars, this will likely be a multi-legged pullback.
The August monthly bar is approaching the May high/close. This area is the beginning of support as mentioned in the prior monthly report.
NASDAQ 100 Emini futures
The Weekly NASDAQ chart
- The week is a non-climactic bear bar with tails.
- This is the third consecutive non-climactic bear bar, which makes it likely that this is a multi-legged pullback.
- In other words, there should be another leg down, and possibly a third leg if the 2nd leg is strong as well.
- The market is also just above the weekly exponential moving average (EMA), which should act as support, but then likely a second leg down.
- Bears wanted to close the body gap with March 2022, which they did this week, although with only a small overlap.
- If bulls can go up from here, the body gap close would be a considered a negative gap – a small overlap.
- Since its highly unlikely for 4 consecutive bear bars, it is more likely for next week to be a doji or bull bar or have a high above the high of this week.
- The market should also test the exponential moving average (EMA) in the next few weeks if not next week.
The Daily NASDAQ chart
- Last week’s report said that the bear leg down in the previous two weeks has been strong – there has not been a bull close above the prior bar.
- Monday this week changed that – it was the first bull close above the prior bar.
- The rest of the week continued the prior strong bear trend – Tuesday was an inside bear bar that got good follow-through Wednesday.
- Thursday was a bigger bear trend bar, while Friday gapped down but ended up as a bull reversal bar.
- The leg down this week is a bear-microchannel – 3 bear bars whose high is lower than prior bar.
- So likely there will be another leg down, even if just one bar.
- There should also be sellers higher – Monday was a big outside up (OU) bull bar, so the low of the bar was a buy for a bull-scalp.
- This failed for the bulls when Thursday and Friday fell so far below Wednesday, so likely sellers around the low of Monday.
- The next target for the bulls is to reach the daily EMA.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
