The Nasdaq futures overbought on both daily and 720 minute charts may indicate a downward move in the near futures.
Nasdaq Futures Overbought on Daily
The Nasdaq daily and 720 minute chart both show that the Nasdaq futures is overbought. Typically, with an overbought market on a higher timeframe, expectations are that the market will retrace. The 45 minute and 180 minute have already started the retracement. Both the 45 and 180 are currently seeking a resistance area to push price down further.
With the daily Stochastics at 93, indicating Nasdaq futures overbought status, and a reversal bar forming (on current bar), we could see a quick run down to the ATR on the daily chart. The one area to watch out for would be the 720 minute ATR at 6654.
However, with the weekly Stochastics at 19, the run down will probably be short-lived as the weekly chart will need to find a resistance area to help push prices down. If the Weekly ATR does not offer resistance, then the Nasdaq may continue to move up.
Additionally, traders should watch the weekly chart because there is a possible head and shoulders formation appearing, which would indicate further downward movement after the right shoulder completes formation.