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Assessments / Blog


2018-07-17
ES #F Supply with Selling pressure developing


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.

In our previous assessment we called for a down day Monday and it materialised Yesterday. Supply dominated the trading session, and price closed down 6.75-points. Although Volatility decreased (bullish), Selling pressure developed overnight. On the daily chart the upward thrust shortened and net Supply on a 3-day basis is present at the moment. If the 2790.00 level does not hold, we expect another down day Today.

NYSE Daily Signals July the 16th    

Dashboard:

The Supply and Demand Reading (1st row) came in at -8.1 with 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 at 109% which is bearish. The change in average Volatility from the previous day was positive 21% (Up) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We had no warning 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 -72% (Down) shown on the right of BXB Dashboard.

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

46% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 47%, a neutral sign for the markets.

Caution:

Keep an eye on more Supply continuing Today as signals are mostly bearish. A break of the 2790.00 level could see a sell off to the 2765.00 level, if Demand does not show up.

Data 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”.

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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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