Assessments / Blog

ES #F Down and Up, now what?

Yesterday prices went down to a low of 2570.25 until the market open and then reversed upwards to a high of 2585.50. The positive delta volume (net buying) on the last bar of the swing low is clearly visible on the chart and should have been a warning of the pending price reversal upwards. During the initial decent the $VIX advanced to above the 12-point level and then declined sharply and closed at 11.50. During this decline of the $VIX price advanced 15.25-points.

Price is moving sideways at the moment and some Buying pressure is developing with a slight decline in price movement, probably due to either profit taking OR accumulation by buyers absorbing the selling. The current up wave (still in progress) has drawn less volume than the previous up wave and if there is follow through to the down side with a rise in Volatility ($VIX) it will confirm the possible No demand signal and further weakness should develop in the market. A bar close below 2575 should spark more selling and a close below 2563.50 can threaten the near term bullishness. If Buying pressure continues with an ease in Volatility and a bar close above 2585.75 we can most likely see another new high. With the amount of selling on the advance that took place Yesterday, our bias is to the down side.

See results of our Strategy on the MTF Tool trading the EURO


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