Market Overview: NASDAQ 100 E-mini Futures
The NASDAQ E-mini futures week is High 1 bull reversal after 6-1 big bear bar.
The daily chart spent most of the week below the daily exponential moving average (EMA) after the big bear breakout below the EMA last Friday. By Friday, bulls are making an effort to get back above the EMA by having close back above EMA on Thursday and Friday.
The monthly bar so far is a bear bar with a big tail below.
NASDAQ 100 E-mini futures
The Weekly NASDAQ chart
- The week is a new High 1 (H1) bull reversal bar after the big bear bar of 6-1.
- The market did go below the low of the prior H1 of 5-18, which means any bull that had a stop below that low is stopped out.
- At the same time, the market found buyers below that low, and before reaching the close of April / open of May. See the prior report for the reasons why the close of April / open of May will likely be intermediate support.
- It is still possible the market visits that level as part of the leg down.
- Bulls need a good entry bar next week with a close above the bull close from 2 weeks back.
- Bears want the opposite – they want to prevent a new higher close, so they can try to take the market sideways.
- The higher timeframes dictate more sideways to down than straight up.
The Daily NASDAQ chart
- As much as bears produced a big bear breakout below the EMA last Friday, bears are still unable to produce consecutive bear trend bars.
- Most of the week was spent sideways to down below the EMA, with bulls attempting to get back above the EMA with close above the EMA on Thursday and Friday.
- Monday is a bull inside H1 buy signal bar at the EMA. It was expected that the big Friday bear breakout bar would have bad follow-through, so it met that expectation.
- At the same time, the big bear breakout below the EMA meant there would likely be sellers at the EMA, and a 2nd leg down. There were likely buyers who bought the EMA, which was reasonable as the market had not visited the EMA for more than 20 bars.
- Those buyers are trapped when the market closed far below the EMA. Monday allowed those disappointed buyers to exit breakeven, and bears will sell the EMA knowing this.
- Tuesday triggered the bad H1 buy signal bar and then sold off to a new low. The big tail below Tuesday also shows that the market found buyers.
- Wednesday is an inside bear bar Low 1 attempt to resume the leg down.
- The inside bar did not get an entry bar. Thursday is a big bull outside bar closing just above the EMA.
- A big bull bar at resistance is usually not a good buy signal bar.
- So, it was more likely for Friday to be a doji or bear inside bar. However, Friday is a small bull bar also closing above the EMA.
- This increases the odds that there are buyers above Friday.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
