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Assessments / Blog


2019-02-22
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”.

Caution:

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.

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.

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

This Part II of our research post regarding the future potential of any very deep market correction and/or a potential new-age market rally based on our presumption that the global market dynamics have changed dramatically over the past 20+ years.  Are the market gurus correct in thinking the next big move will be to the downside?  Or are they missing key aspects of the global market dynamics that point to a massive upside rally that is setting up for the future.  Today, we continue to explore some of the key elements that we believe present a total scope of the potential for the global markets.

In Part I of this article, we highlighted how globalization changed the planet and increased inter-dependence across the globe for economies and governments.  The point we wanted to make from the first segment was to highlight the fact that the current world economies are vastly different than the global economy prior to 1980 or 1970.  Over the past 20+ years, the world’s economies have become more and more connected and interdependent on one another.  Additionally, global investors and financial institutions have become heavily interconnected and reliant on the global market economies of the world.  The reality is, the world is vastly different than it was 40+ years ago in terms of finance, banking, and investment objectives.

Click on this link or chart above to read more.LINK TO PART III

RISK DISCLOSURE:

The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.

Trading Forex, Stocks and Options, Futures and any Cryptocurrency, Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith.

 

 


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