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ES #F Strong Demand and breakout
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 internal data of the total market. It is updated in real time during the regular trading session of the NY Stock exchange 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”.
Yesterday we mentioned that “We have weak Demand and the Supply/Demand Sentiment tool is still moving down. A move below the zero line can lead to another pullback. Strengthening and an upturn will probably result in a breakout to the upside” and that it was happened Yesterday. Strong Demand entered the market and pushed price to above the 2688 level. The Supply/Demand Sentiment tool turned quickly to the upside.
The Supply and Demand Reading (1st row) was 5.9 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 negative 11 (bearish) as shown on the right of Sup/Dem Dashboard.
We have an alignment signal to the upside on the signals board (1st row).
Daily Volatility direction (2nd row) was Up (blue up triangle). The change in daily Volatility from the previous day was positive 37 (bullish) shown on the right of BXB Dashboard.
The NY Stock market traded Up for the day (blue up triangle in 3rd row).
61% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 59%, a positive sign for the markets.
In short we have all signals aligning to the upside with Strong Demand. Our previous levels of resistance were broken with ease. The breakout to the upside will probably test the 2718.50 level.
Resistance to the up side is at 2718.50 and 2744. A break above this levels will test the 2807.25 level.
Resistance will come in at 2718.50 and a pullback from here is possible.
There was one good opportunity during the trading session Yesterday on the 26-minute chart below:
Strategy is simple, enter when 2 Dashboards align and exit when two opposite triangles on BXB Dashboard appears. Entries and exits are shown with arrows on the chart.
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).
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