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Assessments / Blog


2017-05-10
ES #F No follow through


On the 234 minute chart yesterday an attempt for a new high was started, but there was no follow through. The aggressive buying on the last bar in progress yesterday, ended up in aggressive selling with Negative volume delta developing, as well as buying pressure which did not follow through and was turned around into selling pressure. A doji Smart money bar developed and Volume Flow switched to the down side. The Relative strength indicator has shown weakness through this whole process. The last up wave also moved only 10.25 points, the lowest since the up wave which ended on 17 January 2017 with 9.25 points. There is still some selling pressure, but aggressive buying (Positive Delta volume) is present on the last bar in progress. Interesting to see the Divergence on the Volume Simplified Oscillator on the daily chart that developed, which is still present on the weekly chart as well. On the daily chart Volume Flow turned around to the down side, but there is no selling pressure present at the moment. A break of 2387.75 to the down side can lead to more weakness to the 2379 and 2376 resistance area. Given the lack of follow through to the up side, a break of 2400 to the up side is needed in our view to get the Bulls on track again.For trading ideas and tips, join the Faceboook Group "Trading For An Income" here:https://www.facebook.com/groups/1832814697041353/

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