Choppy Trading Day
The E-mini S&P 500 TFlow chart opened and the market edged up and through by a tick. I like to see a two tick break to be convinced it is not a false breakout. The market then reversed and made a new low for the day. However, the TF5VCrs study was headed down following the high, and that indicates traders are not following the market down. This looks like a day that could just chop around unless we see the buy or sell volume lines of the TF5VCrs study dominate one over the other.
Wednesday’s trading displayed a classic short-term top formation. The market opened and traded up to a resistance zone from the previous day. The TF5Um5D study peaked, and then rolled over as the price edged below the resistance zone. Then, the market moved back into the resistance zone, but the volume was very light. We see the dark, narrow TFlow bars and both the buy volume line (green) and the sell volume line (red) of the TF5VCrs were trending down, which indicated low interest in the market. That is a classic sign of a top.
Next, the market traded down to a support zone, but the sell volume line (red) of the TF5VCrs was climbing, which meant sellers were dominating.
To read more about these two custom studies, please check out my article TFlow Custom Studies.