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Assessments / Blog 2018-07-04 ES #F Supply is weakening The 3-day and daily chart above shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using Supply and Demand data calculated for the S&P 500 mini futures contract. Buying pressure is still present on the daily chart but price has moved up and down between 2748.00 and 2693.25 for the past 6 days. Supply on the 3-day and daily chart is weakening. The price action looks a lot like accumulation, with a spring on the 28th of June and a test on the 2nd of July. So far the 2700.50 level is holding and we did not have a bar close below this level. A bar close above 2748.00 will spark more Demand. On the current daily bar volatility dropped below 100% which is a bullish sign. NYSE Daily Signals July the 4th Dashboard: The Supply and Demand Reading (1st row) came in at -0.2 with Supply dominating, but weakening. Supply and Demand Direction (3nd row) was to the downside (maroon down triangle), indicating downwards direction. Average Supply and Demand Volatility (4th row) was below 100% which is bullish, but only just. The change in average Volatility from the previous day was positive 11% (Up) as shown on the right of Sup/Dem Dashboard. BXB Signals: We have an unbalanced warning signal on the signals board (1st row). Daily Volatility direction (2nd row) is Down (maroon down triangle). The change in daily Volatility from the previous day was positive 9% (Up) shown on the right of BXB Dashboard. The average volatility is pointing Up (blue up triangle in 3rd row). The Supply and Demand reading is still negative, indicating supply is still dominating but is weakening. For the brave it is time to accumulate. We expect a quick and sudden move soon and the 2796.00 level to be tested, maybe as soon as this week. Caution: Solid demand is needed to get the Bulls on track again and the first step will be a close above 2748. A bar close below 2700.50 will lead to more weakness and the next substantial level of resistance below should be in the 2675 area. Link to Facebook Group where these assessments are also posted regularly. Click here for example of reversal trade taken in Feeder Cattle that can be found on this page. 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. |