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Assessments / Blog


2019-03-28
ES #F Relative Strong Supply


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.

We warned about Sentiment in the Overbought territory and Volatility in the Bearish territory Yesterday. Relative strong Supply showed up Yesterday and price closed down 15.25-points for the day. Volatility increased early in Yesterday’s trading session, but soon eased again. These daily turnarounds from Bullish to Bearish and vice versa, is indicative of high Volatility in the markets and a high risk for traders.

Short term signals lean to the Bearish side but are mixed, with Average Supply / Demand Volatility moving into Bullish territory and Volume decreased in Yesterday’s down move?

Yesterday we mentioned: “A test of the last swing low at 2789.50 remains a possibility”. Price came close to this level and the low of the day came in at 2791.75. A close below 2789.25 could lead to more Selling, with possible resistance at 2777.00. Any larger sell off could lead to a test of the swing low of March the 8th at 2726.50.

Bottom line: The 2835.00 level to the upside and 2789.50 level to the downside in our view will be key near term levels to watch. A close above 2835.00, accompanied by Buying pressure and Volatility staying in Bullish territory, with Comparative strength, would put the Bulls on track again. If price stay below 2816.25 a good possibility exists that we will see a new swing low.

End of the day Signals March the 27th:

S & D Dashboard Algorithm turned Bearish, except for Average Volatility which is Bullish

Daily Signals turned to the downside

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:

Average Supply / Demand Volatility moved into Bullish territory (Below100).

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

Link to recent research post:

NATURAL GAS SETS UP ANOTHER BUY OPPORTUNITY

Recently, we warned that Natural Gas may set up another opportunity for traders to buy into a support zone below $2.70 with a selling range near or above $3.00.  Our upside target zone is between $3.25 and $3.45.  The price of Natural Gas has recently fallen below $2.69 and we believe this could be the start of a setup for skilled traders to identify key buying opportunity in preparation for a quick +8% to +15% upside swing.

Historically, March and April have been pretty solid months for Natural Gas.  Let’s go over the historical data using three different seasonality charts which all point to higher prices.

Click on this link to read more....

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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.

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