JOIN OUR MAILING LIST
Assessments / Blog
ES #F Supply with lower Daily Volatility
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.
On Friday price traded to a high of 2915.50, but failed to stay above the 2914.50 (tipping point mentioned in our previous assessment). The low came in at 2873.25 before the ES recovered later to close down 12.75-points, 21.75-points above the low. This was a remarkable recovery and price closed in the top half of the candle, setting up a potential Spring formation.
Divergences to the upside exists on the Simplified Volume Oscillator and on the Supply/Demand sentiment tool. A quick rally and bar close above 2914.50 should favour future Bullish activity.
We are still in Selling pressure territory and there is a possibility for more weakness, but due to the Divergences and relatively low wave volume of the current downswing in progress, it is not conclusively convincing that further weakness will follow. If the 2865.00 level is taken out the market could be in serious trouble.
Daily Signals October the 5th:
S & D Dashboard algorithm was Bearish, But Daily Signals turned Bullish
A bar close Monday above 2914.50 could give credibility to the potential Spring formation. Daily Volatility dropped by 78% and can be a Bullish indication if sustained. We are still in Selling pressure territory. If the 2865.00 level is taken out the market could be in serious trouble. Be warned that historically, October is the most Volatile month of the year!
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 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.