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ES #F Moderate Supply but Volatility now bearish
The daily chart of the Transportation Index is shown on the left and the daily chart of the S&P 500 mini futures contract on the right above, shows our proprietary SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using data from the NYSE.
The ES lost 4.25-points Yesterday in a battle between Buyers and Sellers. The Sellers walked away as winners for the day, but the August high at 2917.50 held. Overall moderate Supply, but average Volatility is now in official bear territory. The Simplified Volume Oscillator is also still in Selling pressure territory.
The Transportation Index ($Tran) shown above has been declining the last few days. Many use this Index as a leading indicator of cyclic economic activity.
Considering all of the above, and the fact that price is finding it difficult to rally away from the important resistance at 2917.50, increases the chances of a deeper sell off.
Daily Signals September the 25th:
S & D Dashboard readings now bearish and Daily Signals are still mixed but Volatility increased
If Volatility keeps on rising, more downside movement will follow. Similar to the day before Yesterday, there was a fair amount of Supply towards the end of the trading session but price held above the August high, so a move higher today is also a possibility. The market is at an important balance point and follow through to the up- or downside, may determine the near term direction of the market.
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