The NASDAQ over-extended its upside target and the later part of last week stalled and started to retrace. Nothing exciting here as it was expected for weeks. lol
So the NASDAQ Futures Weekly chart how a (breakout) failure of the 55EMA, and somewhat of a bearish reversal top candlestick pattern in the likes of a Dark Cloud Cover of sorts, or two-thirds of a Three Inside Down. Both suggest that the upcoming week would more likely be a down week. Notably, this past week completes the patterns symmetry of the NASDAQ fall magnitudes, as mentioned in previous earlier post.
The Daily chart shows the completed trend reversal pattern (wave 1-5) of a series of higher lows and higher highs. And now, a retracement is in order, in a somewhat expected fashion. MACD and RPM both clearly indicate the retracement. This drawback should be looking for the 13K (or rather 12,900) support. A weaker market is more likely to bring it down to 12,000 or lower instead... perhaps later in September.
I am in two minds at this point and here is why... The Daily chart appears to have turned around the trend into a bullish recovery. BUT, the weekly chart is in need of a higher low, which may have a 2000 point range at least. The two things that bugs me bad is the failure of the weekly 55EMA, and the distance from breaking above 14,400 for a weekly bullish clearance. Overall, the weekly chart is not ready (yet) to launch the next bull trend despite having pretty decent technical indicators.
Stay safe and well... be cautious as volatility will spike!
You raised an important point. The failure of the 55 EMA means the same as the EMA ribbon is acting as resistance. See chart below.
SpyMasterTrades
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We've never seen such sustained bearish in tech since the Dotcom bust.
Auguraltrader
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Thanks @spy_master Looking at this, can be observed that with the convergence of the ribbons, there is "an attaction" of price back to the EMA20 (or even EMA10) at a tighter convergent point, as the ribbons then invert. So longer term is suggestive to be bullish, but not until the tight convergence, and inversion (to where the EMA20 is above, etc)... this area roughly appears to be about the 13K level. :) So what happens at the next 13K visit might decide the next trend...