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ES #F Supply but critical support holding
The daily chart of the S&P 500 mini futures contract above (right) shows our proprietary SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using data from the NYSE.
Yesterday the Supply and Demand algorithm printed the highest Supply reading since the sell-off on the 10th but critical Support at 2772.50 area held with a close at 2772.25.
Volatility is still high and we see selling pressure developing and a break of this level to the down side may lead to more weakness. Overhead resistance exists at 2829.75 and a break of this level may see prices advancing again.
The down move Yesterday reached a low of 2756.50, 11-points away from the level at 2748.50 mentioned in our previous assessment. More weakness is a good possibility in the near term and this level might still come into play.
The daily chart of the Transportation Index on the left above shows that a possibility exists that the index can still move lower, which will take the overall market lower as well.
If any substantial move lower occurs, resistance identified to the down side comes in at 2657.00, 2625.00 and 2567.25.
Daily Signals October the 19th:
S & D Dashboard Algorithm is Bearish and Daily Signals all are Bearish
Another move down 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.
These are suggestions which we believe to be accurate based on our research and analysis of the markets. Use them as guides to how this price rotation plays out.
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