Sellers Come in on the Good CPI News
Early morning trading in the e-mini S&P 500 starting out strong in reaction to the CPI headlines. However, when the pit session opened, the market has found sellers at yesterday’s high. Before we see today’s action, we will review yesterday’s TradeFlow chart.
Yesterday’s TradeFlow chart, which uses 5-tick aggregation, we see the price started out with some upside movement and buyers were initially dominating, as the TF5Um5D study was positive. The market climbed to a new high for the day and the TF5VCrs buy volume line (green) formed a peak at point A. The market retraced and the volume was very light as indicated by the narrow TradeFlow bars. The market then staged another advance to a new high, only this time the buy volume line did not climb and the sell volume line (red) tracked the buy volume line and crossed at point B. The arrow C is lined up with the histogram bar following the peak by the TF5Um5D study. The peak indicated that buyers were not following the market up. The TF5Um5D study going negative indicated sellers were coming in.
This morning, the e-min S&P hit the resistance zone three times, and the TF5VCrs buy volume line (green) never climbed, which indicated buyers were not coming in. Sellers are dominating the early trade.