JOIN OUR MAILING LIST
Assessments / Blog


2018-08-22
ES #F Weaker Demand and Up thrust


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.

 

The mini S & P traded to a high of 2874.00 Yesterday, before pulling back in the later part of the trading session to close up 3.25-points at 2861.75 (below the 2863.75 level as mentioned previously) after an Up thrust. During trading outside normal trading hours the market traded to a low of 2846.25 and is trading at 2855.50 at the time of this writing. The anticipated pullback mentioned Yesterday occurred outside normal trading hours and it is difficult at this stage to make an assessment of how deep the pullback will go.

The fact that demand has weakened and Volatility increased, with somewhat mixes signals must alarm traders to be cautious at this stage. The Simplified Volume Oscillator is still in Buying pressure territory, so unless Selling pressure develops, we do not anticipate a move below 2832.00 at this stage. A bar close above 2863.75 will probably lead to an attempt to take out the January high, but the weakness (in Volatility) must first be addressed.

NYSE Daily Signals August the 21st   

Dashboard:

The Supply and Demand Reading (1st row) came in at 1.3 with Demand dominating the trading session.

Supply and Demand Direction (3nd row) was to the Upside (blue up triangle), indicating upward direction, with No substantial strength.

Average Supply and Demand Volatility (4th row) was at 49% which is bullish. The change in average Volatility from the previous day was negative 13% (Weakness) as shown on the right of Sup/Dem Dashboard.

BXB Signals:

We had no 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 13% (Weakness) shown on the right of BXB Dashboard.

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

43% of stocks (4th row) traded above there VWAP (Volume Weighted Average Price) compared to the previous day’s 53%, a negative sign for the markets.

Caution:

A move above 2863.75 will probably lead to an attempt to take out the January high, but the current weakness must subside first. A test of the Regression lines 1st Standard deviation at around 2832.00 is a possibility.

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”.

Affiliate:

Stock & ETF Trading Signals

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.

IS GOLD ON VERGE OF A BOTTOM, SEE FOR YOURSELF:

Click on image below to read the full post

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.

 


Back Back to top
Close