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2018-12-28
ES #F Late Demand after substantial down move


In our last assessment we cautioned: “Volatility is still very high and more substantial up and down swings are a possibility”. After price moved down to a low of 2397.00 Yesterday, a late rally occurred and the ES closed up 92.25-points at 2489.25 from the low.

We are still in Selling pressure territory, but selling pressure is easing and nearing Buying pressure territory. Average Volatility moved into Bullish territory (below 100).

Resistance to the upside is identified at 2508.00, 2521.75, 2542.50 and 2583.00.

It is unlikely that the rally to the upside can be sustained (unless Buying pressure develops).

After Supply dominated for 14 out of 15 trading sessions since December the 4th, we had 2 sessions of Demand dominating at the end of the trading session. Yesterday strong Demand entered the market in the last 40-minutes of the trading session, erasing all Supply, which was very dominant until a continuous wave of Demand showed up near the close. This kind of behaviour is not seen often, and an interesting trading day should unfold today.

We will keep a close eye on Selling / Buying pressure today to assess the possible next move and sustainability of the current up move.

End of the day Signals December the 27th:

S & D Dashboard Algorithm turned Bullish but the Daily Signals are mostly Bearish

Caution:

Supply and Demand Volatility eased. The $VIX dropped below 30. Unless Volatility picks up again, we expect to see smaller daily price ranges.

 

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