Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures week is a big buy signal bar at EMA – exponential moving average. The week has a bigger tail below and a small tail above.
On the daily chart, the market looks like a bull leg up in trading range between the daily and weekly EMA.
The monthly bar is a doji bull bar with a tail above and below.
NASDAQ 100 Emini futures
The Weekly NASDAQ chart
- The week is a big buy signal bar at EMA. It has a bigger tail below and a small tail above.
- It went below last week’s outside down bear bar and then reversed up. This week’s bull body has reversed last week’s bear body.
- It was more likely for this week to be a bull bar given we were at major support.
- Bulls now need a good entry bar next week. What is good for bulls is that the body of the buy signal bar this week is entirely above the EMA, opening at the EMA.
- What is less ideal is the size of the buy signal bar. It is essentially as big as last week. It increases the risk for bulls buying with a stop above this week.
- If one looks at the size of the move from the December high to the low of this week, the market is at the midpoint of that move already.
- If we see the market being in a trading range, buying above this week’s high can be considered buying in the middle of the range.
The Daily NASDAQ chart
- Last week’s report said we will likely be in a trading range between the daily and weekly EMA.
- Last week’s leg down is a weak leg – no consecutive bear trend bars.
- This week looked like a bull leg up in a trading range – no consecutive bull trend bars.
- Monday was a doji bear bar with a tail below, following the big bear bar of Friday.
- Tuesday went above Monday, triggering Monday’s buy signal bar, but ended the day as a doji bear Low 1 sell signal bar. Wednesday did not trigger Monday’s bar and was a big bull bar that closed at the EMA.
- Big Bars esp. at support or resistance usually don’t have good follow-through. Thursday was a bear Low-2 bar at the EMA.
- Friday was a big bull trend bar with a small tail above closing above the EMA, such that half of the body of the bar is above the EMA and half below.
- Bulls need a good follow-through bar above to have the first pair of consecutive bull bars since early January. Like Al says, when bulls need one more bar, what will the bears do? Bears will sell this close to prevent that.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
