Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures July monthly candlestick is a big bear doji bar with a big tail above and below. It is at least a pause bar after two big bull bars, and a bad sell signal bar.
The week is a bear bar with a good body, a long tail above and a small tail below, closing below the weekly exponential moving average (EMA). This week closed the open bull body gap with the high close of February 2024.
The August month is already a big bear bar in the first 2 days of the month, having triggered the sell-signal bar by going below the July low.
NASDAQ 100 Emini futures
The Monthly NASDAQ chart
- The July month bar is a bear doji bar with big tail above and below.
- This month is a trading range bar. At one point in the month, the bar was a big bull bar. One day before the close of the month, the bar was a big bear bar with a small tail below. The last day of the month was a big bull bar to add the big tail below the monthly bar.
- Since it is a bad sell signal bar, there are likely buyers below. If the market makes it to the top half of the tail above, there will likely be sellers.
- Bears want a bear bar closing below the low of July.
- Bulls want to close as a bull trend bar to start the next leg up.
- Either way, it is likely the market will let the bulls who bought the close of June exit break-even.
The Weekly NASDAQ chart
- The week is a bear bar with a body uniform in size with last week’s bear bar, a long tail above and a small tail below closing below the weekly EMA with most of the body below the EMA.
- At the end of Wednesday, the week was a good-looking bull reversal bar at the EMA. Thursday and Friday were big bear trend days that changed the bar to a bear bar with a big tail above.
- As mentioned in last week’s report, bulls did not want another bear bar this week to avoid a bear micro-channel.
- This is the first time since probably 2022 where the market has 3 consecutive bear bars with good sized body and most of the body closing below the EMA in the first leg of the move down (as opposed to October of last year when most of the body closed below the EMA in the third leg of the move down).
- The market will likely have 2 more legs down in the channel phase, even if there is a pullback.
- At a minimum, it should have a close below close of this week, even if there is a pullback.
- Since the market closed the bull body gap with the high close of February, this area should act as temporary support and it’s unlikely for next week to be another big bear bar. It is likely to be a doji bar and start of sideways to up move for the next couple of weeks possibly back to weekly EMA.
- Bears will want another bear follow-through trend bar.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
