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Assessments / Blog


2018-06-26
ES #F Strong Supply


The daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using data from the NYSE.

Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.

As mentioned in our previous assessment we expected a down day on Monday, but the range of the down move was a surprise. It seems that trade tensions are still creating uncertainty in the markets after an official said the US is drafting curbs, looking to block Chinese investments in US technology firms.

The ES fell 37-points on Monday closing at 2722.50, after trading at a low of 2700.50 on strong Supply. At the time of this writing the ES is trading at 2725.50, 25-points above Yesterday’s low.

Buying pressure is developing and we reached the Fear area in the Supply / Demand Sentiment tool, which normally acts as an oversold indication. A rebound to at least the 2735.75 to 2741.50 area is expected.

NYSE Daily Signals June the 25th    

Dashboard:

The Supply and Demand Reading (1st row) came in at -9.8 with strong Supply dominating the trading session.

Supply and Demand Direction (3nd row) was to the downside (red down triangle), indicating downwards direction, with substantial strength.

Average Supply and Demand Volatility (4th row) was above 100% which is a bearish sign. The change in average Volatility from the previous day was negative 67% (Down) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We had a sell 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 290% (Down) shown on the right of BXB Dashboard.

The overall NY Stock market traded Lower for the day (maroon down triangle in 3rd row).

46% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 51%, a negative sign for the markets.

The reaction to the ongoing trade wars was severe Yesterday, and we expect a rebound to at least 2735.75.

Caution:

Solid demand is needed to get the Bulls on track again and the first step will be a close above Yesterday’s high at 2758. A close below 2700.50 will lead to more weakness and the next substantial level of resistance should be in the 2765 area.

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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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