Here you will find the most recent trade update released today in the Market Dimensions Advisory. This update is showcasing a MDA SnapShot New Entry in the E-Mini S&P Market. To get these updates sent directly to your inbox, please subscribe for free HERE. To see all MDA updates visit my blog page HERE.
Published 2/22/16 8:28 am central:
We are trading higher in the overnight +20.00 pts with us @ 1933.75 and a high of 1938.75. This is led by oil once again, which saw an almost $2 rally in the overnight, from weekend announcements on potential oil output levels being frozen or decreased from Russia, Iran and OPEC influenced countries. No need to go into funamentals of this will actually take place or not, or when they say “Freeze” that means they will remain at January levels, which were all record high. Or to mention that there is still an existing supply gut. The fact is that the market saw this as bullish news and we are up. Longer term I think we will see this sell back down and could potentially see stocks follow, but not sure if or when this will take place.
Looking at the ES levels and technical’s associated with that, we are still holding the same boxes as we had most of last week on the Weekly, Daily and 240 min. This is often common for the Daily and weekly boxes to not change as much, but typically we see some movement on the 240 min boxes. We are stuck right at these high Top ranges with the market really looking for a strong compelling reason to take us higher. With the recent lift in Oil and if we get another session or two of bullishness we could just see that happen and we could be challenging 1950 again and then pushing toward that Weekly Top level of 1975 as seen on the Market Action Scanner. We had a bit of a whipsaw end of the week with oil news. Ending the week we had the opportunity several times to break the 1900 level but it held strong and rejected. This could be the tone of the weak that bulls won that short battle and we look to make new highs. The most recent high we had was 1940.00 on Feb 1st and then made a new low 10 days later @ 1802.50. The overnight high fell just short of hitting that level.
Current momentum is favoring the bulls, looking at Market Action Scanner we above Daily Top levels and above the weekly POC of 1918. Looking at a daily Chart with the TAS navigator tool you can see we are getting close to perhaps flipping from bearish red to bullish green. We will have to see what this week brings and where trading volume comes out at these new significant levels as well as what other markets will be doing too. We had some negative British Pound news to start the day so keep an eye on the currency markets as well.
Looking at the 30 min MDA SnapShot chart, we do have levels here with both a buy and sell level highlighted. It is difficult to suggest buying as that is right near the high level and we are up 20+ pts on the overnight, however, we are challenging to make recent highs in quite some time so we could move higher or get some volatility. I would almost rather wait for a test of that level once or twice and then try to get on the team if we have a chance on a retracement from new highs. On the sell side, we could definitely see selling momentum take us back down to the 1918 weekly POC level. I think this is a bit against the grain so I would keep stops tight or keep that back in your mind. If we do get a small sell off look for the High Volume area to hold and potentially get long.
If you would like to discuss these levels as well as levels on other markets I encourage you to reach out to me directly. I provide similar analysis on all markets for current client.
MDA SnapShot 30 min: (Click for larger new window)
Market Action Scanner: (Click for larger new window)
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading. Market Dimensions Advisory – Free Edition includes an email newsletter subscription. The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
Subscribe to Market Dimensions Advisory – Free Edition
Market Action Scanner
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading.
Market Dimensions Advisory – Free Edition includes an email newsletter subscription.
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
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