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Assessments / Blog 2018-06-12 ES #F Demand with little upside reward The daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals. Click here for example of reversal trade taken in Feeder Cattle that can be found on this page. Yesterday the market traded to a high of 2794.25, one tick above our resistance identified on our last assessment at 2794.00 to the upside. The weekly bar that started Yesterday suggests that Supply has the upper hand so far at the time of this writing, with buying pressure diminishing. We had a decent strength Demand reading Yesterday but price only moved up 3.50-points, with a balanced market signal. This may lead to sideways price action. Pullbacks can also be expected this week with support at 2756.00 to the down side. Several important events are taking place this week, which may have a negative impact on the markets, before moving higher again. Daily Signals June the 11th Dashboard: The Supply and Demand Reading (1st row) came it at 4.5 with Demand dominating the trading session. 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 still below 100% and is bullish. The change in average Volatility from the previous day was negative 6 (Demand weakened) as shown on the right of Sup/Dem Dashboard. BXB Signals: We had a balanced market 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 7 (Demand weakened) shown on the right of BXB Dashboard. The overall NY Stock market traded Lower for the day (blue up triangle in 3rd row). 50% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 59%, a negative sign for the markets. We are neutral as to the near-term direction, but bullish on the longer term. A pullback in the near term seems likely. Caution: Weekly chart started the week with Supply dominating at the time of this writing. A pullback to the 2756.00 level remains a possibility, before another move higher. Link to Facebook Group where these newsletters are also posted regularly. Below the weekly chart, showing Supply is dominant at the moment, although we had an up close Yesterday, suggesting a lot of profit taking is taking place. 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. Trading Forex, Stocks and Options, Futures and any Cryptocurrency, Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith. |