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ES #F Demand subsiding
Yesterday during the regular trading session price rallied to a high of 2732.50, before pulling back to 2718.25, the previous resistance that has become support and closing 11-points higher at 2728.00 for the trading day. The expected pullback did not materialise on a Daily basis. Demand has subsided during Yesterday’s session and on the Daily chart, with weakening Demand readings on a Daily basis, signalling a possible pullback on Monday.
The Supply and Demand Reading (1st row) was 0.7 Yesterday which indicates Demand had the upper hand by a whisker.
Supply and Demand Direction (3nd row) was to the upside (blue up triangle), indicating upwards direction, with No 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 2 (weakening) as shown on the right of Sup/Dem Dashboard.
We had no 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 47 (weakening supply) shown on the right of BXB Dashboard.
The NY Stock market traded Lower for the day (maroon down triangle in 3rd row).
49% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 56%, a weakening sign for the markets.
In short Demand subsided during the regular trading session and has moved out of the Greed territory on the Supply/Demand Sentiment tool on the Daily chart, to the down side. Average Volatility also has increased a little but is still at 53%. The lower 50% levels often act as a base for a pullback or “cooling down effect” for sideways price movement.
A pullback is possible on Monday and the nearest support level to the down side identified is at the 2700 to 2696 level and 2688.50.
Resistance to the up side is at 2744. A break above this level will probably find resistance at 2807.25 over the longer term.
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 first short entry did not work, but the second-long entry was a substantial winner and exited at the close of the trading session.
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 through the session.
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