Quiet Start as the Market Holds at Resistance
The E-mini S&P 500 TFlow chart opened just above a support zone and rallied to a resistance zone from yesterday’s high. The TF5Um5D study peaked and has rolled over. However, the buy volume line (green) and the sell volume line (red) of the TF5VCrs study are heading lower, indicating the pull back is on low volume. I would watch for either the buy volume line (green) or the sell volume line (red) of the TF5VCrs study to start climbing independently to indicate the trend.
On Tuesday, the market gap down on the open, feel, and the recovered. During the first rise towards the resistance zone the buy volume line (green) of the TF5VCrs study did climb above the sell volume line (red) but both were trending down. This action indicated traders were not aggressively bidding up prices and was a corrective rally. The TF5Um5D study peaked, and then rolled over when the price is in the resistance zone. The market then head down. However, as the prices worked their way lower the TF5Um5D study diverged. The market went into a trading range. We see this by the flat lines of the TF5VCrs study and the narrow, dark TFlow bars.
The market edged higher, and then traded back into a support zone. The TF5Um5D study formed a small pivot low and prices climbed along with the buy volume line (green) of the TF5VCrs study. That was a sign traders were starting to bid aggressively.
To read more about these two custom studies, please check out my article TFlow Custom Studies.