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Assessments / Blog
ES #F No Supply
With the holiday mood out of our mind it is business as usual. Early in the new year we had some warning signs of a possible correction, but the news of the new Tax Bill gave bullish momentum to the upside. After the pullback early in the new year, Buying pressure developed with no sustained Selling pressure and we saw a substantial move up. The last down swing that ended on the 10th also was indicative of another move up, as the volume on this down move signaled No Supply. The down move also happened on aggressive Buying (Positive Delta Volume).
The bullish fever has cooled down and we are at the top of the regression channel, with Volatility increasing. If Selling pressure develops we can see a pullback to the 2774.50 to 2763.50 level. If no Selling emerge, the 2800 level should be penetrated with ease. Also keep an eye on weakness developing on the Comparative Strength tool.
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