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Assessments / Blog


2019-01-10
ES #F Still Demand and mixed signals


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.

The ES rallied for the 4th consecutive session and gained 9.25-points Yesterday. Demand dominated 8 of the last 9 sessions. It looks if the upward movement is fading. The Supply/Demand algorithm is still Bullish, but the daily signals are Bearish and Average Volatility reached a climax. On the 8th the lowest (that we have seen ever) average Volatility of 22% were measured. Yesterday it came in at 32%. Bearish daily signals and a very low Volatility (when it reaches a climax), normally result in a pullback or reversal to the down side within a day or two. The Comparative strength tool is also at the “blue line”, and can lead to weakness, when crossing the line downwards.

Resistance to the upside is identified at 2603.00, 2625.00 and 2676.00.

We expect the market to make a pullback Today. It is difficult to say how deep the down move might be. Should the market trade downwards, our support zones are at 2546.00, 2529.00, 2487.50, 2456.00 and 2431.00. An unfilled gap exists to the downside in the 2478.75 to 2448.25 area, created on the 4th. (See chart below).

On the Faang (FB, Amazon, Apple, Netflix and Google) Index chart below, the Faang Index looks weaker than the ES. It had a lower high and weaker close Yesterday. The Faang normally lead the ES.

End of the day Signals January the 9th:   

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

Average Supply / Demand Volatility reached a climax for 2 days in a row

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:

Comparative strength is weakening, keep an eye on Volatility. If Supply shows up and Volatility Increases Today, a move down is on the cards.

 

Link to Facebook Group where these assessments are also posted regularly.

Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.

Simple Day Trades: Gap windows and Price spikes - update

The market opened slightly higher today and we expected a pullback to fill the morning gap. Also, we had to small price spikes to the downside adding more confirmation to this.

IMPORTANT NOTE: Pre-market trades like these are posted in our morning update and video only. We don’t want to blanket all our longer-term traders with day trades. So if you are an active trader be sure you read our morning update and watch the video with your morning coffee.

The morning gap has filled and our spike targets are being reached as well. Keep in mind, these are short-term trade setup which will be implemented into our member’s area in the near future that auto-update and post for those of you who want to take advantage of early day trades and be done by 11 am most trading sessions. Once we have things implemented there will be a detailed PDF on how trading these along with a video.

For you longer-term traders we are also working on having our swing trade charts and signal post and update automatically in the member’s area as well. Each trading strategy, chart, and signals will run in a separate member’s area page and you will be able to follow and trade the strategies that fit your personality and trading style.

This is going to take us 30-60+ days to get things fully set up and running and it’s going to add a lot of value and opportunities for you - Subscribe Now!

 


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