Note from the Market Delta chart how we could not build volume and accept value above ES1000, instead creating a volume bulge around 999 (side histogram). With the market's false upside break, we saw significant selling volume push the market below its Wednesday lows (bottom histogram). The rejection of that volume region at 999 was a nice tell that we were seeking value lower. I'm now looking to see if we can stabilize at the morning lows and find buying interest, given the number of sector non-confirmations mentioned in the recent tweet (follow here).
It's a nice illustration of how seeing where we don't build volume and where we do can provide useful clues as to the short-term demand and supply in the market.
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2 comments:
Mr Brett
Thanks for posting on market delta. I find that I would like better understanding of it. A lot of volume at a level is perceived as 'accepting value'. The question that keeps popping into my mind is whether all that volume is because of a volume surge, or whether it is maybe low volume across a lot of time periods. And what are the implications of each of those scenarios.
Thanks
Can someone post a link explaining Dr. Brett's chart? I've never seen that kind before, thanks.
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