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Assessments / Blog 2018-08-24 ES #F Supply with little reward 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 closed down as expected Yesterday, but the result was only a loss of 3.25-points with a lot of Supply (price again closed below the 2863.75 level as mentioned previously). The Simplified Volume Oscillator is still in Buying pressure territory, but has weakened. The Bears had a go in the market Yesterday but could only move price 3.25-points, which means that there is still a lot of buyers out there, resulting in a relatively narrow price spread. This begs the question which way the market will move next? The narrow price spreads may signal that absorption of the Selling by the Bulls is taking place? If price does not close above 2863.75, and the weaknesses mentioned Yesterday continue, we will probably see a much deeper pullback. We identified resistance to the down side at 2846.25, 2834.00, 2820.00 and 2803.00. If price close above the 2863.75 level we expect the resumption of the near term up trend, with a new onslaught of the January high. We changed our near term outlook to neutral, as price may be stuck in narrow sideways price ranges for the near term. Price has mostly traded in the 2846.25 to 2869.75 price range the past 4 trading sessions and a breakout from this ranges will probably be the safest way to anticipate future price direction.
Daily Signals August the 23nd All signals on Supply and Demand Dashboards turned bearish! Caution: At the time of this writing the ES is trading at 2862.75 and a little strength is present in the market outside regular trading hours. The safest play would be to wait for a breakout of the trading range mentioned above. 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:
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