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ES 06-18 / 02. May 2018

wtl
wtl Daily Digest

Traded volume was 1.368.993 according CME settlement data. 

As we know now the FED left rates unchanged and with no change to its inflation forecast. Interesting response was a resumed USD appreciation and more consolidation for stocks. The treasury market initially saw yields decline but was reversed into the close. Currency and the strength of the Dollar will be what most people talk about tomorrow, especially if you look at some emerging market pairs, but actually also the Euro and GBP. 

FED: Market Reactions

This short video is a good evidence how market agents are doing their job to "manipulate" the market. Manipulating a market, or in this case the ES Future, is by my definition not negative. It is a part of this "Zero-Sum-Game" and everyone who want to play this game should better understand how trading a market really works. Following order flow and reading order book is essential to have at least a chance to make a living out of it.

You'll see following market actions: 

  • Cancelling liquidity aka volume
  • Building "ceilings" to defend price levels
  • Removing activity aka "ceilings" when goals are reached 
  • Pressing in one direction aka. liquidity migration (Bid support)
  • "Refuel" for selling again
  • Breaking "floors" and building "ceilings" above
  • Giving up

Enjoy!

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