Nasdaq 100 Can Bears Produce Good Bear Bar Below 3-4?

Market Overview: NASDAQ 100 Emini Futures

The NASDAQ Emini futures week is a bear bar with a tail below. The question now is – Can bears produce good bear bar below 3-4? The November 2021 close is still a magnet.

On the daily chart, the market is a lot more two-sided than the weekly charts. Bears are able to produce good bear sell signal bars with follow-through and 2^nd legs.

NASDAQ 100 Emini futures

The Weekly NASDAQ chart

• The week is a bear bar with a long tail below.
• The body of this week largely overlaps with last week.
• Last week’s report had mentioned how the November 2021 close is still in play as it currently represents an open bull gap.
• Bears have done their part by preventing a bull bar this week.
• Bulls failed to produce a bull bar but have at least put a long tail below the bear bar this week.
• Can the bears now produce a good bear entry bar next week?
• So far bulls have been buying below bars. Will that change next week?
• If bears can produce a bear bar next week, it will be the first time since October that there are consecutive bear bars.
• There will likely be another leg up, even if bears create a bear bar next week.

The Daily NASDAQ chart

• Friday is big bear bar closing just above the daily exponential moving average (EMA).
• Most of the body of Friday overlaps with the body of Thursday.
• The market for the past month has mostly been channeling above the daily EMA.
• The market has also managed to prevent successive closes below the November 21 high close.
• As mentioned above, the channel is a lot more 2 sided on the daily chart than the weekly chart.
• Bears are getting good sell signal bars with follow-through which then have 2^nd legs.
• Monday was a good sell signal bar, with a strong follow-through bear bar on Tuesday that found support at the daily EMA.
• Wednesday was an inside trading range bull bar that closed below its mid-point.
• Thursday triggered the bad sell-signal bar of Wednesday and ended as a big outside-up bull bar with tails above and below.
• The tail above on Thursday suggested that bulls who bought last Friday’s close and were disappointed by the action early in the week got out.
• Friday started the day by going above Thursday to a new all-time high, but closed as a big bear reversal bar closing just above the EMA.
• Such a big bear bear bar closing just above the EMA is usually a bad sell signal bar, so there are likely more buyers.
• Bears will need to produce a good sell signal bar like they did Monday.

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