Sellers Come In
The E-mini S&P 500 opened and then tested a resistance zone, the TF5Um5D study peaked, and the market rolled over. The selling took the market down to a support zone, the TF5Um5D study did not turn up, so it was clear that buyers stepped back.
Monday’s TradeFlow chart shows the market tested a support zone, and while theTF5Um5D study did not go negative, it did start to climb, and indicating buyers were coming in.
Interestingly, the theTF5Um5D study formed a peak (A) and the market formed a peak (B). A number of times the market will form a higher peak, and the TF5Um5D will form a lower peak, and thast divergence is a sign of a short-term top. This time it did not. The indication sellers were starting to dominate was when the TF5Um5D made lower readings at 11:22.
To read more about these two custom studies, please check out my article TradeFlow Custom Studies.