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ES #F Strong Demand subsided halfway
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 “The breakout to the upside will probably test the 2718.50 level”. Price broke through the 2718.50 level with ease to a high of 2725, but ended the trading day at 2716.25, below this level. The Supply/Demand Sentiment tool on the Intraday chart shows demand subsided from about halfway in the regular trading session.
The Supply and Demand Reading (1st row) was 7.8 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 9 (bullish) as shown on the right of Sup/Dem Dashboard.
We have a balanced market warning signal 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 14 (bullish) shown on the right of BXB Dashboard.
The NY Stock market traded Lower for the day (maroon down triangle in 3rd row).
56% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 61%, a negative sign for the markets.
In short Demand was strong and the identified resistance level at 2718.50 was reached and broken with ease. However, Demand subsided hallway through the trading session and is nearing the Greed territory on the Supply/Demand Sentiment tool on the Daily chart. Average Volatility also has reached a very low level (51%), which often acts as a base for a pullback or “cooling down effect” for sideways price movement. We also noticed that Yesterdays Supply/Demand reading is higher than the previous day, but the price movement Yesterday was lower than the day before, indicating a possible temporary halt to the up move.
A pullback is possible today and the nearest support level to the down side identified is at 2688.50.
Resistance to the up side is at 2718.50 and 2744. A break above this levels can test the 2807.25 level.
There were two opportunities 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). Notice how Demand subsided at about halfway through the session.
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