Market Overview: NASDAQ 100 Emini Futures
The NASDAQ Emini futures week is a bear doji bar with close above 11-3 low.
The daily chart got above the daily exponential moving average (EMA) to around the close of the buy signal bar from last week. There, it found sellers and ended the week below the EMA again.
This month so far is an inside bear bar with most of the body overlapping October.
NASDAQ 100 Emini futures
The Weekly NASDAQ chart
- The week is a bear doji bar with prominent tails.
- A doji bar indicates trading range price action – buyers are buying around bars to the left where sellers were likely trapped, and selling around bars to the left where buyers are likely trapped.
- For example, any bull that bought the low of the week of 10-27 during last week, expecting to make a scalp, was trapped when last week closed as a bear bar. If they bought the close of last week, the high of this week is around the low of 10-27, allowing those buyers to possibly exit breakeven on the first trade and profit on the 2nd trade.
- Bears needed a good bear entry bar, closing near its low, this week. The next target up is the close of the week of 10-27. That’s the close of October, and there are buyers trapped there. The target below is the close of the bear bar of 10-6 to the left, which is also around the weekly EMA.
The Daily NASDAQ chart
- Last week ended below the daily EMA, with Friday as a bear doji bar with a big tail below.
- The question posed in last week’s report was whether bulls can transition back above the EMA.
- Monday is a strong bull bar closing above the EMA.
- It is also around the close of the buy signal bar from last Wednesday.
- Last week’s report said that there would likely be sellers here, as the buyers who bought that close were trapped.
- Now, bulls need a good bar on Tuesday. The market has bear doji bars for the next two days, going sideways. Thursday is a big bear bar closing back below the EMA.
- Now Friday needs to be a good follow-through bar, but big bars usually have bad follow-through.
- Friday is a bull doji bar with a long tail below and a prominent tail above.
- This is not a good buy signal bar. The market will likely go sideways to the EMA, in trading range price action, and then bears will try to get a good sell signal bar.
- In general, while bears cannot get good successive bear bars, there are more bear bars than bull bars in the last 10 bars – 6 bear, 4 bull bars. This is a sign of selling pressure.
- Bulls would like to get a good buy signal after this sideways move, and a possible wedge bull-flag somewhere around the low of Friday.
- The market is not far from the weekly EMA below. The market may have to transition into a trading range between the daily and weekly EMA before deciding whether to go above or below it.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
