Wednesday, October 19, 2016

Final Presidential Debates Tonight - And Today, Nothing Happehend....

I called it - NQ today set about filling in LVA and ES fortifying the HVP south of the Composite POC. Inside todays actions, there were few trades...

This week were reports on how the financials are reporting higher trade profit with fewer workers, I believe the tempo of the market has changed...

MP Action - These next two charts show little other than slowing price action on lower volume with a possibility to continue filling in the LVA tomorrow.
ES filling in LVA
NQ Filling in LVA

MP Action respected visual MP artifacts supporting the claim that short term operators were in control today.
MP Action, NQ
MP Action ES

On the second consecutive day of even lower volume, price action adhered very well to recent visual indicators - Again, a sign of  short timeframe traders.   

Prices responding to visual chart levels - A sign of short term operators...

Volume Action - Volume was around half of daily average.  By all intents, supply has dried up at this range?

The large lot filters show two different stories, selling in the NQ and buying in the ES while the retail traders in both took price higher. A two week round bottom is taking shape suggesting a climb higher perhaps.

IF NQ breaks 4850, then 4850-4900
IF NQ rejects 4860, then 4775-4850

IF ES breaks 2145, then 2140-2170
IF ES rejects 2145, then 2100-2145

Unless something "drastic" happens….

Reason to stay here.  If I were Big NQ Money, I would stay the course filling in where I am at structurally filling in the LVA and the same if I were Big ES money. However, with volume so low, this to means activity here has dried up and a move is in order.

Reason to go long.  Zooming out to the 12 day view, there is slight evidence of a slow bottom being put in.   The ES large lot traders were buying today.  The NQ large lot buyers were not present today but price climbed due to the small lot traders.

If I were buying all of last weeks inventory in the NQ, I would want the price to go higher before liquidating.

Likewise in the ES that has endured lots of selling the past two weeks.   If I were buying all of the inventory, I too would want price to go higher so I could liquidate.

Reasons to go short:  The OBV continues to show liquidation.  Perhaps this is an indicator that is broken?  If continued selling remains the norm, a liquidation would have to be the result - a fundamental correction.

To be continued...