#202513 - priceactiontds - weekly update - nasdaq e-mini futures
Good Evening and I hope you are well.
comment: Last week I wrote that we need a proper channel down and the past week was the worst case scenario for the bulls. We could not even get to the 50% retracement and turned down violently again. There is a small chance for the bulls to make this a double bottom and go sideways but as of now that is very very low probability. More likely is that we have formed the top of the channel and will get a big second leg down to 18000 or lower. If we go down below 19000, my thesis is that we go down for 2 more weeks and then earnings will decide on the next impulse. For now the technicals are clear, market could not even retrace 50%, we turned around the daily 20ema and volume on the down move is picking up again. Everything points to a bear trend.
current market cycle: strong bear trend
key levels: 19000 - 20500
bull case: Bulls running for the exits. They have some previous support at the 2024-09 low 19073 but that is most likely not stopping this freight train down. Next big support is at 18000/18100 which is my W3 target. Only question now is if we find buyers tomorrow who want to keep the market above 19000. It’s not impossible that we could see 1-2 more days of stalling around 19000 but given the current structure the selling is just too strong to look for any longs.
Invalidation is below 19000.
bear case: Bears have now erased about a year of gains and we are heading lower. Friday was another strong sell signal and bears now want to close the monthly bar at the very low to also produce a huge sell signal on the weekly and monthly charts. The selling is strong enough for at least a decent sized second leg and the measured move leads to 16200 which is between my year-end-special target of 17500 and the bull trend line from the covid lows. Plan for the next 2 weeks is the W3 and W4 where I expect W3 to hit 18000 and W4 could retest 19000.
Invalidation is above 20600.
short term: Clear bear trend now once we drop below 19000. W3 should get us to around 18000 while W4 could be good for a retest of 19000. No longs for me what so ever. Big bear trend line from 22450 has to hold.
medium-long term - Update from 2024-03-16: My most bearish target for 2025 was 17500ish, given in my year-end special. Clear W1 of this bear trend. Market now has to close below 19000 to confirm W3. Depending on how deep W3 goes, W5 will either reach only around 17500 or the bull trend line around 16000.
current swing trade: None
chart update: Added most likely upper bear trend line and adjusted the 5-wave series.
comment: Last week I wrote that we need a proper channel down and the past week was the worst case scenario for the bulls. We could not even get to the 50% retracement and turned down violently again. There is a small chance for the bulls to make this a double bottom and go sideways but as of now that is very very low probability. More likely is that we have formed the top of the channel and will get a big second leg down to 18000 or lower. If we go down below 19000, my thesis is that we go down for 2 more weeks and then earnings will decide on the next impulse. For now the technicals are clear, market could not even retrace 50%, we turned around the daily 20ema and volume on the down move is picking up again. Everything points to a bear trend.
current market cycle: strong bear trend
key levels: 19000 - 20500
bull case: Bulls running for the exits. They have some previous support at the 2024-09 low 19073 but that is most likely not stopping this freight train down. Next big support is at 18000/18100 which is my W3 target. Only question now is if we find buyers tomorrow who want to keep the market above 19000. It’s not impossible that we could see 1-2 more days of stalling around 19000 but given the current structure the selling is just too strong to look for any longs.
Invalidation is below 19000.
bear case: Bears have now erased about a year of gains and we are heading lower. Friday was another strong sell signal and bears now want to close the monthly bar at the very low to also produce a huge sell signal on the weekly and monthly charts. The selling is strong enough for at least a decent sized second leg and the measured move leads to 16200 which is between my year-end-special target of 17500 and the bull trend line from the covid lows. Plan for the next 2 weeks is the W3 and W4 where I expect W3 to hit 18000 and W4 could retest 19000.
Invalidation is above 20600.
short term: Clear bear trend now once we drop below 19000. W3 should get us to around 18000 while W4 could be good for a retest of 19000. No longs for me what so ever. Big bear trend line from 22450 has to hold.
medium-long term - Update from 2024-03-16: My most bearish target for 2025 was 17500ish, given in my year-end special. Clear W1 of this bear trend. Market now has to close below 19000 to confirm W3. Depending on how deep W3 goes, W5 will either reach only around 17500 or the bull trend line around 16000.
current swing trade: None
chart update: Added most likely upper bear trend line and adjusted the 5-wave series.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.