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ES #F Strong Supply
The ES lost 45.25-points on Friday, closing at 2600.25 (March 2019 contract – December contract closed at 2597.00 – eSignal continuous contract rolled over already). NB – The volume in the March contract is still very low, and it is recommended to trade the December contract until volume in the front month contract increases.
Volatility is in Bearish territory (100 and above). Simplified volume is still in Selling pressure territory, but shows signs of reversing to the up side and Supply / Demand Sentiment is at the “Fear” (oversold) level.
On the comparative strength/weakness analysis, the weakness in the ES escalated and is at extreme levels.
Yesterday we mentioned: “The $TRAN (Transportation Index) made a new low, whilst the ES did not make a new low? One could argue that the ES is the stronger one, but given the fact that the $TRAN is most of the time leading the market, the possibility is high that the ES will catch up to the down side “. Friday the $TRAN again made another new low, whilst the ES did not?
AS expected the ES had a go to test the December 10th low. If Supply continues to rule, the April low of 2552.00 will come into play. Our remaining targets to the down side are at 2567.25, 2542.50 and 2474.75.
Daily Signals December the 14th:
S & D Dashboard Algorithm is Bearish and all the Daily Signals turned Bearish
Comparative strength / weakness reached extreme levels, with Sentiment in the “Fear” (oversold) zone, making a pullback to the upside a possibility on Monday.
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