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ES #F Supply emerged
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 Vertical acceleration zone where prices started an acceleration to the down side on December the 4ih 2018, has been “taken out”. Price moved above the top and reversed back to close into this zone Yesterday.
Demand was weakening the previous 3 sessions before Yesterday. Supply emerged Yesterday and dominated for the duration of the trading session. Price is also below the near term uptrend channel and Selling pressure is developing. Yesterday’s daily down bar closed near the low, engulfing the previous 3 bars (Outside bar) and closed lower than the previous 4 bars. This makes it a very strong reversal bar.
We expect a pullback to the down side. Resistance in the 2763.00 to 2729.00 area can be expected if the market trades downwards. Any up move should test the last major swing high at 2814.00.
End of the day Signals February the 21th:
S & D Dashboard Algorithm turned Bearish, except for average volatility, and the Daily Signals are Bearish
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”.
Volatility picked up Yesterday and can accelerate. External events like the outcome of the US-China trade talks can have a sudden temporary effect on the markets.
Below is a link to an interesting series of posts regarding the long term outlook of the markets!
TRADERS MUST STAY OPTIMISTICALLY CAUTIOUS PART II
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