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Newsletter / Blog


2017-03-17
Sideways and absorption?


The ES continuous contract is trading sideways at the moment. The Delta volume oscillator suggest that net buying took place on the current down bar. There was also a long Smart money bar 5 bars back, which normally leads to a turnaround or pullback / reversal within 7 bars. The Volume Simplified oscillator shows buying pressure developing. The current down wave in progress drew out 1.27 million contracts and price moved only 15.25 points, compared to the previous 3 down waves which all drew much less volume with more or less the same or more price movement. This looks like the selling is absorbed by the buying, which is a bullish sign and can lead to another up move again. Keep in mind the wave is not completed and the picture can change. A close below 2362 can change the picture to bearish. Our upside targets is 2401 and 2419.

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