E-mini S&P 500 TradeFlow Chart Trading Sideways
At the start of today, the price on the e-mini S&P 500 TradeFlow chart traded up, but the buy volume line (green) of the TF5VCrs study was diverging, indicating buyers were not paying up. Then, the market rolled over and the sell (red) volume line of the TF5VCrs study climbed and is the peak reading so far today, indicating strong selling. At the moment, the two studies are tracking each other, which is a neutral reading.
Yesterday’s TradeFlow chart shows an up trend, then a resistance zone formed and following the retest, the market dropped. Notice how when the market climbed the buy volume line (green) of the TF5VCrs study was staying flat, and at point B, the reading was below the reading of the sell volume at point A, and then the two crossed at point C. That was more evidence of weak buying.
Next, the market traded down into the support zone, and the TF5Um5D study formed a pivot low and began to climb. However, the TradeFlow Volume readings showed more trades into the bid (3,000 more) then the offer, which was not a good sign. The support zone failed.
Next, a new support zone formed, and during this test, the TF5Um5D study formed a pivot low and climbed and the TradeFlow Volume study showed slightly more offers taken then bids hit.
To read more about these two custom studies, please check out my article TradeFlow Custom Studies.