E-mini TradeFlow Chart Stair Stepping Lower
At the start of trading today, the price action of the E-mini S&P 500 TradeFlow chart traded sideways, but following the announcement that the ISM Index came in at 49.5 (a reading below 50 indicates a contracting manufacturing sector) sellers came in and hit bids. Any support zones from the previous day gave way. This is not a surprise considering how weak the NYSE Volume ratio is running. So far, the resistance zones are holding the market back.
Yesterday’s TradeFlow chart shows a sideways trend, the first support zone did not hold, but the second support zone did. Next, the price rallied to a resistance zone, pulled back, and then broke through. The TF5Um5D study formed pivot lows low in the support zones, signaling a shift in selling, at least temporarily. The TF5Um5D study formed a pivot high at the resistance zone, but the selling was only temporary.
To read more about these two custom studies, please check out my article TradeFlow Custom Studies.