The futures analysis for this week is below (in video format). There are some interesting candlestick patterns on the weekly charts to the upside but we may see some downward moves first as most of the daily charts are overextended with bearish divergence appearing on the 6 hour charts.
The emini Nasdaq weekly chart shows a bullish outside candlestick pattern. However, the daily is overbought but has not reached the congestion dot yet. The six hour chart shows a bearish divergence with both the ADX and the Stochastics overbought.
The emini Russell 2000 shows a bullish candlestick formation with the daily close to the ATR after breaking through the FMA and the stochastics overbought. The six hour chart shows bearish divergence so a test of the ATR on the 6 hour chart is likely.
The emini S&P 500 (ES) probably has the better setup this morning. Although the weekly shows a bullish engulfish pattern, the daily is at the CD with the stochastics being overbought. The 6 hour chart shows bearish divergence on the stochastics and both the ADX and RSI are overbought. This indicates a potential retracement down to the ATR.
Futures Analysis for the Week – Video
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