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Assessments / Blog 2017-05-13 ES #F Sideways as expected We mentioned the possibility of sideways price movement yesterday and that is exactly what happened. On the daily chart the trading range on Friday was well within the trading range of the previous day. Volume Flow is still to the down side with selling pressure. On the 234 minute some aggressive buying came in on the last bar (Positive Delta Volume) with Buying Pressure developing and Strength present, however price has not moved a great deal. The last up wave was a low volume up wave and the current down wave in progress only moved 9.25 points so far, the lowest point down move for quite some time. This price action in narrow ranges reminds of possible absorption winding up like a coil to be released in one direction or another. Be extremely careful as the VIX index (implied volatility or fear gauge) fell to 9.56 last week, the lowest since late 2006, amid a relatively muted stock market. A sudden rise in the VIX from here, can send prices spiraling down which happened during previous market crashes/corrections. Some further sideways price action is possible for the near future. A bar close below 2379 can lead to further weakness. A bar close above 2398 can put the Bulls in control again. On the longer term (weekly) chart, the downward Divergence between price and Volume (Volume Simplified Oscillator) is still clearly visible with some selling pressure developing. All warnings to be extremely careful when taking positions in the market. RISK DISCLOSURE: The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading. Trading Forex, Stocks and Options, Futures and any Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith. |