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Assessments / Blog
ES #F Supply but Selling pressure easing?
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.
Friday saw more Supply and the ES closed down 18.75-points to close at 2669.50, after trading at a low of 2627.25 (a few points above our resistance at 2625.00 identified in the previous assessments).
Volatility is still very high but at the time of this writing, selling pressure is easing. The strong close on Friday with a potential Spring formation will probably lead to a pullback to the upside Today.
Daily Signals October the 26th:
S & D Dashboard Algorithm is Bearish and Daily Signals are mixed
Be cautious of the legendary V-shape reversals. The February low at 2529.00 would be the line in the sand if the market moves substantially lower.
See chart below for comparison of mini S&P 500 futures to NYSE Composite Index:
The ES made a Higher high and low compared to the $NYA which made a Lower high and low. This can mean the ES which looks stronger than the Index has reached a low for now, but it is too early to be sure.
Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.
Overall, our question still remains valid – where’s the capitulation in the precious metals? If this downside price movement within the global markets was “the top”, we have yet to see any real capitulation in precious metals, which we believe would be the first place to reflect this true fear. Without this capitulation, our researchers continue to believe this is a technical “reversion” move where price is moving lower to re-establish support for another upside price advance.