Assessments / Blog

ES #F Strong Supply, faded at end

Supply dominated most of the trading session Yesterday, with the SD Algo printing a reading of -40 (indicating strong Institutional Selling) around the middle of the session, before Demand started challenging the Supply. Supply had the upper hand at the end of the session. The ES closed down 13.50-points for the day. Although price penetrated the previous swing high at 2814.00 it did not close above this important level. The close came in near the top of the vertical acceleration zone at 2791.50 and closed near the middle of the day’s range to form an Up thrust. Yesterday’s range engulfed the ranges of the last six days.

Selling pressure is still present, with the Comparative strength weakening. Support to the down side should come in at 2782.50, 2762.00, 2737.75. A greater sell off should find support in the 2696.75 to 2677.75 area.

Comparative Strength Watch list:

The first block on the watch list is the Daily chart. The $VIX Comparative Ratio and Average turned up and the Ratio “Crossed” the average up (Green on bar 0 - the current bar). The $TRAN which normally leads the market has turned down (pink) and the Ratio crossed the Average 3 bars (days) ago, whilst the ES weakened 1 day ago (Yesterday), with the Ratio and Average turning down and a Cross to the down side.

The big question: Will there be follow through to the down side?

End of the day Signals March the 4th:

S & D Dashboard Algorithm turned Bearish.

Daily Signals turned 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 the $VIX reached a peak at 16.98 Yesterday. Link to article about volatility VIX setup.

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


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