JOIN OUR MAILING LIST
Newsletter / Blog
ES #F Supply continued
On the 28th of December we warned about supply entering the market and to watch for sustained Selling pressure. This is exactly what happened on Friday and the 2679 level was broken. Comparative weakness has developed, Volume flow is to the down side and the Multi Time Frame Tool is firing down, with Volatility increasing. The result was a 30.5-point ($1525 per contract) move down from the new all-time high at 2698.25, taking out the previous high by one tick. There were several clues, giving clear warning signals:
Follow through to the down side or not, will be key for the next move. On the daily chart Yesterday’s price action looks like an up thrust (price penetrated previous resistance/high and reversed immediately down to close in the bottom half of the bar). Price can move sideways from here and probably will make a pullback upwards, but our next target is 2651.75 if no bar closes above 2679. If 2561.75 is broken our longer term targets is at 2620 and 2605.
At the moment the S&P 500 mini contract (ES) is trading at 2677 after a little recovery from Fridays close at 2676 as expected. Buying pressure is developing and if no Selling pressure develop we should see the 2685 level acting as resistance. If buying pressure could not be sustained and selling pressure develops we should see the 2668.50 level being tested again. A bar close below this level would probably result to a down move to the 2651.75 level. Volatility is still increasing at the moment, and if it does not stabilize the next down move could begin with further increased volatility.
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 Cryptocurrency, 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.
|Back||Back to top|