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ES #F Demand after Spring action
The daily chart of the S&P 500 mini futures contract above, shows our proprietary SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using data from the NYSE.
Yesterday we stated: “We believe that the market will move higher today …. because of the Spring that occurred…” and that is what happened, the ES gained 22.75-points. The strong Supply on the 15th moved sentiment in the “Fear” zone (oversold) and the market corrected to the upside Yesterday, with Demand that showed up. The market closed at 2844.00 exactly in the area where we expected resistance Yesterday.
The Simplified Volume Oscillator moved into Buying pressure territory, but Demand sentiment is in or near the “Greed” zone (overbought), making a pullback to the downside a possibility.
IF the 2820.00 level holds IF the market corrects to the down side, and Demand shows up a close above 2852.75 will get the Bulls on track again. A move above 2863.75 will probably lead to an attempt to take out the January high.
NYSE Daily Signals August the 16th
The Supply and Demand Reading (1st row) came in at 2.7 with Demand dominating the trading session.
Supply and Demand Direction (3nd row) was to the Upside (lime up triangle), indicating upward direction, with substantial strength.
Average Supply and Demand Volatility (4th row) was at 73% which is bullish. The change in average Volatility from the previous day was negative 70% (Up) as shown on the right of Sup/Dem Dashboard.
We had no 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 218% (Up) shown on the right of BXB Dashboard.
The overall NY Stock market traded Lower for the day (maroon down triangle in 3rd row).
50% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 58%, a negative sign for the markets.
A pullback to the 2820.00 level still remains a possibility and a break of this level could lead to a deeper sell off, if Demand does not follow through. The line in the sand is at the 2791 level and if it does not hold, the bulls will be in trouble.
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”.
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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