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ES #F Buying and No Supply (REVISED DUE TO BUYERS STEPPING IN AT CURRENT PRICE LEVELS)
On Thursday the low point upswing was confirmed with Selling pressure developing and price made a pullback, confirming the No Demand upswing and close below 2580.75 as warned on the 9th. Price made another run upwards after the Smart money down bar penetrating our down side target of 2563.50 on the next bar. After the low volume upswing (the lowest upswing since September the 20th also signalling No demand) that ended in overnight trading, price moved down and then sideways on Friday, despite good Comparative strength. Volatility also increased and some decent buying took place on this down move on Friday (which can be attributable to profit taking or buyers entering the market at these levels).
The last down swing was the lowest since October the 20th and is signalling No supply, with Buying overcoming the selling, indicating the lack of supply (sellers) at these levels. Buying pressure has not overcome the selling pressure as yet, but we got Volume Flow to the upside indicating a lot of buying and the Comparative strength indicator shows strength with upward movement at the moment. If there is follow through to the upside and volatility does not increase from here, another new high is likely. Our proprietary reversal pattern points towards a down side target of 2557.50, IF more weakness develop. No bar close below 2563.50 occurred and sideways movement is possible for the near term and a close below this level will threaten the longer term bullish momentum. A bar close above 2586.75 can get the bullish momentum on track again. An increase or decrease in Volatility with Buying or Selling pressure should be the key as to what to expect next.
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