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Assessments / Blog


2018-07-07
ES #F Rally, close above Mean


The daily chart of the S&P 500 mini futures contract above, shows our SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using data from the NYSE.

As expected the ES rallied Yesterday and the high came in at 2766.25 and closed 24.00-points up at 2762.50. The close was above the accumulation zone and above the 2756.25 regression mean. All signals are bullish, but we entered the “Greed” zone on the Supply / Demand Sentiment tool, with a Divergence down on the Simplified Volume Oscillator and there is a good possibility for a pullback on Monday.

NYSE Daily Signals July the 6th    

Dashboard:

The Supply and Demand Reading (1st row) came in at 2.5 with Demand dominating the trading session by far.

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) was at 40% which is bullish. The change in average Volatility from the previous day was positive 28% (Up) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We had 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 positive 9% (Up) shown on the right of BXB Dashboard.

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

59% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 66%, a negative sign for the markets.

We are above the accumulation zone and the regression mean, but entered the “Greed” zone.  The percentage stocks above their Volume Weighted Average Price dropped by 7% and we have a Divergence on the Simplified Volume Oscillator with Buying pressure decreasing. A pullback seems likely.

Resistance above is identified at 2785.25 and 2796.00. Resistance to the down side is at 2748.00 and 2716.00.

Caution:

Pullbacks can occur and price can enter the accumulation zone to the down side again. As long as the 2716.00 level holds and no strong Supply emerge we should continue upwards from here.

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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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