Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures week is a bull breakout closing far above EMA – exponential moving average. This is the best booking breakout of the EMA in the recent past and bulls now need a good follow-through bar.
The daily chart started the week with a strong bull breakout and follow-through on Monday and Tuesday, and smaller follow-through and sideways bars for the rest of the week.
The monthly chart is a strong bull trend bar breaking out above the monthly EMA, and the prior April month. Prior reports said that it was unlikely for this month to go far above April. Well, this month is breaking out above April. This is making the quarterly bar even bigger. Given how big the quarterly bar already is, it is unlikely that June will be a bull trend bar, regardless of how May ends.
There are two more weeks left in the month. Is it likely that both weeks will be bull trend bars? It is less likely. What is more likely is that the rest of the month is sideways – so some combination of down followed by up/or doji and bear bars.
NASDAQ 100 Emini futures
The Weekly NASDAQ chart
- The week is bull trend bar breaking above the EMA and closing near its high.
- Last week’s report had said that the weekly and monthly EMA are essentially flat, and the market will likely swing around them.
- Bulls needed a good bull bar this week to break above and close far above the weekly EMA, while bears needed a good bear bar or at least another doji bar.
- Bulls got their bull breakout bar.
- Bulls have also closed the bear body gap with the close of 1-6-25.
- Bulls now need another follow-through bar, whereas bears do not want a follow-through bar. Bears want a small doji for a chance to go sideways or a good sell signal bar.
- The breakout is strong enough that there are likely buyers below at the weekly EMA, the monthly EMA, and last month’s close.
- Those are all the places that traders expected to be resistance, so there are traders trapped at those levels.
The Daily NASDAQ chart
- The daily chart started with a couple of bull trend days, signifying a breakout above the weekly EMA with a good follow-through bar.
- Wednesday is a smaller bull bar.
- Thursday and Friday are smaller sideways doji bars.
- The bull breakout Monday and Tuesday have likely made the weekly and monthly EMA temporary support, as traders were likely betting that those EMAs would act as resistance. Those traders are now trapped and will buy when the market gets back to those levels.
- The daily EMA has also crossed back over the monthly EMA.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
