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2019-01-05
ES #F Demand on wide range day


We stated in our previous assessment, we expected a rally for at least part of a day and the possibility that it can reach the 2529.00 area. Continuous Demand and the ES closed higher to close at 2529.50 on a wide range day (100.75-points from low to high) on Friday.

Bullish signals developed at the end of the day on Friday, with 2 factors against it, the Divergence in Buying / Selling pressure and the Supply / Demand sentiment that is in the “Greed” zone (Overbought), making Monday’s move unpredictable with a 50/50 chance of moving in any direction in our view. However, in our view the enormous move up, should have caused strong Buying pressure, but it stayed relatively close to the start of the Selling pressure area, causing a Divergence to the down side?

Resistance to the upside is identified at 2542.50, 2583.00, 2625.00 and 2676.00.

Average Supply / Demand Volatility dropped to 63% (Bullish) with 60% of stocks on the NYSE above their VWAP. It is debatable if these Bullish levels can be sustained in the current near-term Bearish scenario?

End of the day Signals January the 4th:

S & D Dashboard Algorithm turned Bullish, and the Daily Signals turned Bullish

These readings are an independent assessment of the one and only measureable fundamental market mover: SUPPLY and DEMAND. It does not matter if price is influenced by a geopolitical event, seasonality, fundamental economic data releases or sentiment driven news, etc. It all reflects in Supply and Demand, the “footprints” of the “Big Boys” or “Smart Money”.

Caution:

The market maybe overstretched for the one day. Selling/Buying pressure and Volatility would be the key areas to watch on Monday.

 

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