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ES #F Demand with substantial rally
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 it was Demand all the way with an impressive rally that gained 67.50-points. The 2802.50 level was taken out with a close at 2816.50 and Average Supply and Demand Volatility dropped to bullish levels. The ES has wiped out nearly 50% of the down move since the all-time high.
Overhead resistance exists at 2819.00. The Supply/Demand sentiment Tool is in the Greed zone (Overbought) and average Supply/Demand Volatility was the lowest since August the 20th and % stocks > VWAP came in at 71% (up from 46%) at the end of the trading session. This may signal that Yesterday’s up move was maybe too much too quickly after the recent sell-off. A move down into the 2748.50 area is a possibility today.
Daily Signals October the 16th:
S & D Dashboard Algorithm is Bullish except and Daily Signals all turned Bullish
Another move down to 2748.50 is a possibility. The beginning of Q3 earnings releases will definitely weigh in on the markets. The February low at 2529.00 would be the line in the sand if the market moves substantially lower.
Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.
As fast as the downside breakout occurred, the upside recovery appears to be taking place as Q3 Earnings begin to hit the news wires.
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