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Nasdaq 100 Good Entry Bar to Bad Sell Signal Bar of 7-8

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Market Overview: NASDAQ 100 Emini Futures

The NASDAQ Emini futures week is a big bear trend bar closing near its low. It is a good entry bar to bad sell signal bar of 7-8.

On the daily chart, the market has consecutive bear close below the daily exponential moving average (EMA) for the first time since April.

The monthly chart is now a bear reversal bar with a long tail above. There are still 1.5 weeks left in the month. Bears do not want a 3rd CC bull bar.

NASDAQ 100 Emini futures

The Weekly NASDAQ chart

Nasdaq Weekly Good entry bar to bad sell signal bar of 7-8
  • The week is big bear trend bar closing near its low.
  • It is a good entry bar to the bad sell signal bar of last week.
  • Prior reports had mentioned that the market will likely test the high of week of 6-24 as it was a bad buy signal bar.
  • This week has fallen much below that target.
  • Next, bears need a good follow-through bar.
  • The challenge is that big bars usually have bad follow-through.
  • Even so, when there is a pullback, there should be a second leg down

The Daily NASDAQ chart

Nasdaq Daily Consecutive bear close below ema since April
  • Based on the big bear bar last week, and the bad reversal bar Friday, last week’s report had said that there will likely be more sellers at or above Friday’s close.
  • Monday, and Tuesday were doji bars. Wednesday was a big bear breakout closing below daily EMA.
  • Thursday and Friday were bear follow-through bars closing below prior day lows.
  • This is the first time the market has had consecutive close below daily EMA since April.
  • There is also now a bear micro-channel this week, which means likely there two more legs down and a close below the close of Friday even if there is a pullback.
  • We had said the same about the bull close from the high close of last Wednesday 7-10.
  • The market is at the support area of where the move up started in the third week of June.
  • If this support does not hold, the next support area is the weekly EMA.
  • The chart also shows a potential bull target of the measure move of the uniform breakout bull bars of 7-3 and 7-5 – the idea being, if one bought the close of 7-5 and put a stop below low of 7-3, is there a 60% chance the bulls make the measured move target before the stop is hit? Well, in this case the market did not reach the target and instead hit the stop.

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