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2018-05-17
ES #F Demand again


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”.

Price failed to penetrate the 2700.50 to the down side and we have Demand readings again. ES gained 12.75-points Yesterday. We have a buy signal on the BXB Board. We should be heading towards 2741.25.

Daily Signals May the 16th

Dashboard:

The Supply and Demand Reading (1st row) was 6.3 Yesterday with Demand getting 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 now below 100% and is bullish. The change in average Volatility from the previous day was positive 21 (bullish) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We have a buy 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 negative positive 110 (bullish) shown on the right of BXB Dashboard.

The NY Stock market traded Higher for the day (blue up triangle in 3rd row).

55% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 54%, a positive sign for the markets.

In short Demand overcame Supply which resulted in a 12.75-points up move Yesterday. The pullback seems to have run its course and we are heading to 2741.25, breaking this level will lay the table to continue the upward path again.

Caution:

We identified strong resistance at 2744. A break above this level can test the 2807.25 level. On the 3-day chart, shown below Demand is still very weak (0.3) and volatility has increased a bit, so further weakness can develop, especially if the 2741.25 and 2744 levels are not broken.

Intraday

We took 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).

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.

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