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Assessments / Blog


2018-05-07
ES #F No follow through in Demand


The daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals.

Readings are based on Supply and Demand and Volume obtained from raw internal data of the total market. It is updated in real time during regular trading sessions and does NOT take into account any price indicators or mathematical formulas using price. We do however show the cumulative price change for the trading session and in some instances assess price movement’s relationship to Supply and Demand. It is therefore fair to say that the readings and signals are independent from other popular price indicators and others shown on the chart. The readings are an independent assessment of the one and only measureable fundamental market mover: SUPPLY and DEMAND. It does not matter if price is influenced by a geopolitical event, seasonality, fundamental economic data releases or sentiment driven news, etc. It all reflects in Supply and Demand, the “footprints” of the “Big Boys” or “Smart Money”.

Demand were strong at the opening of the regular trading session, but subsided during most of the session. The ES closed the session with a 7.25-point gain at 2670.25 after a high of 2681.50 towards the end of the session. The close was about in the middle of the daily candle. The Supply/Demand Sentiment tool moved down out of the Greed territory and with the poor close of the daily candle a pullback in the market is possible.

Dashboard:

The Supply and Demand Reading (1st row) was 8.1 Yesterday which indicates Demand had the upper hand.

Supply and Demand Direction (3nd row) was to the upside (lime up triangle), indicating upwards direction, with substantial strength.

Average Supply and Demand Volatility (4th row) is below 100% and is bullish. The change in average Volatility from the previous day was positive 20 (bullish) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We have a balanced market warning signal on the signals board (1st row).

Daily Volatility direction (2nd row) was Down (maroon down triangle). The change in daily Volatility from the previous day was negative 32 (bearish) shown on the right of BXB Dashboard.

The NY Stock market traded Down for the day (maroon down triangle in 3rd row).

47% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 63%, a negative sign for the markets.

In short we have mixed signals and the market can go any direction. We expect a pullback given the poor close of the daily candle and the fact that the Supply/Demand Sentiment tool moved down out of the Greed territory to the down side.

Resistance to the up side is at 2682.25 and 2688.50. A break above this levels will test the 2718.50 high of the 2nd last upswing which has drawn a significant number of contracts.

 Caution:

We have mixed signals and a pullback to the downside is very possible.

Intraday

We did not take any trades due to the Supply/Demand Sentiment tool that opened weak and did not advanced at the opening of the session, although price advanced signalling a Divergence to the down side.

The last sub window on the chart shows the Greed / Fear sentiment measurements of Supply and Demand Sentiment tool. Similar to an Oversold / Overbought situation (but without using price related formulas). There was no clear alignment of this tool with the dashboards during Yesterday’s trading session.

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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.

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