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Assessments / Blog 2018-04-12 ES #F Trading at crossroads with 100% Positive Sentiment? The daily chart above shows our newly developed SUPPLY and DEMAND Dashboard and Daily Signals. The ES has been trading in a narrow range the past 3 days, with price ranges contained within the range of the previous bar (Inside bar) and we expect price to break out up or down out of these narrow ranges soon. Also attached below a chart of a survey by University of Michigan showing 100% on opinions, that the Stock Market will increase in the next year, thus no chance of Decline? This, in our opinion, is a danger point when sentiment gets this high? Dashboard and Signals: The Supply and Demand Reading (1st row) indicates that Demand only just dominated Yesterday with n low positive reading of 1. Despite the positive reading, price movement (2nd row) was down 12.50 points for the regular session trading day. This is an anomaly and a sign of a possible turning point in the market. Supply and Demand direction (3nd row) was to the upside but not strong (Blue arrow), we need to see a lime coloured arrow for substantial strength. Average Supply and Demand Volatility (4th row) is below 100% which is positive for the Stock Market, BUT the change in Volatility from the previous day was negative (-73 – right hand 2nd Signals dashboard) for the day, although it was positive (+40 - right hand 1st dashboard) on the average reading, showing a divergence in Volatility. On the signals boards we see a yellow block (1st row) indicating a possible reversal pattern. Daily Volatility direction (2nd row) was down (red triangle). The NY Stock market traded lower (red triangle in 3rd row). 47% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price). In short we saw weakness in the markets Yesterday (can possibly attributed to the Trump tweet), but our advice will be to be careful when taking long positions at this time. A break above 2679.25 can get the bull market on track again. A break below 2584.50 can lead to more weakness. Our money is on a move lower today. 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 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.
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