Market Overview: NASDAQ 100 E-mini Futures
The NASDAQ E-mini futures week is a big bear bar reversing the past two weeks. This is likely profit-taking after reaching Measured Move target talked about in prior weekly reports.
Most of the damage to the week was done on a single day Friday. The daily chart had a couple of days up, followed by a leg down which looked like a leg in a trading range, except for Friday which is a big bear breakout bar.
It is too early in the month to say anything different than what the prior report has already said – given the risk on the monthly and quarterly chart, it is not likely for this month or the next quarter to be bull trend bars.
NASDAQ 100 E-mini futures
The Weekly NASDAQ chart
- The week is a big bear trend bar, reversing the prior two weeks and closing below 30000.
- One of the bull targets mentioned in prior reports is the measured move (MM) of the bodies of the bar breaking out of the EMA and the follow-through bar, which is at 29900.50.
- The market closed beyond this target last week.
- This week is likely the start of profit-taking.
- The weekly chart has been going straight up since April without any pullbacks, making it difficult to structure long trades along the way. The High 1 buy signal of the 5-18 week provided the first opportunity for bulls to possibly raise their stop or structure a new trade.
- While last week was a good entry bar, this week is really bad follow-through.
- The market should allow bulls who bought the close of last week to exit breakeven.
- If the low of the H1 buy signal is taken out, then the next support area is the close of April / open of May month. The prior report gives the reasoning why.
The Daily NASDAQ chart
- While bears are still unable to produce consecutive bear trend bars, they produced a really big bear trend bar this week.
- Monday and Tuesday are small bull bars with tails continuing the leg up from last week.
- Wednesday is a small bear sell signal bar with tails.
- Thursday is a gap down but ends up as a bull doji bar. So far, this looks like a leg down in a trading range.
- Friday is a very big bear trend bar closing on its low, and closing far below the EMA.
- Given how far the market has closed below the EMA, there will likely be 2nd leg down.
- Big bars usually do not have good follow-through. So, will Monday be a bear follow-through bar? Less likely.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
