Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Where Next For The Three Sisters?

By Anna CoullingStock MarketsSep 25, 2020 02:21PM ET
www.investing.com/analysis/where-next-for-the-three-sisters-200538901
Where Next For The Three Sisters?
By Anna Coulling   |  Sep 25, 2020 02:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

For investors wondering where the current bearish trend in U.S. equities is likely to find some support, we need to consider the charts for the YM, the NQ, and the ES futures contracts and. in particular. the location of the volume point of control for each on the daily timeframe.

YM Daily Chart
YM Daily Chart

If we begin with the YM Eminis, several things are clear.

First, note the trend monitor indicator on NinjaTrader transitioned to red early in September confirming this change in sentiment clearly.

Second, in terms of the volume point of control, which is the yellow dashed line, this is the fulcrum of the market and cannot only be termed ‘fair value’ but also and denotes the heaviest concentration of transacted volume over time on the chart. It is, therefore, where we can expect a pause point and see a sustained period of congestion develop in the current bearish trend, and for the YM this is in the 25,700 region, so some way to go for the Dow Jones from the current 26,540. So far, we have yet to see any sustained buying with the rally of mid-September looking extremely weak and confirmed with the heavy selling volumes which followed.

NQ Daily Chart
NQ Daily Chart

Moving to the NQ Emini in the same timeframe, this presents a slightly different picture. The volume point of control is already in evidence at 11,100 with the NQ currently trading at 10,828. Note, too, there is little in the way of any price based support below other than a minor level on the accumulation and distribution indicator and denoted with the red and blue dashed lines at 10,700 and below. Once again, the trend monitor is bright red and confirming the outlook for this index.

ES Daily Chart
ES Daily Chart

Finally to the ES Emini, which at the time of writing is trading at 3212 and fast approaching the volume point of control immediately below. Again, note the weak rally in mid September on falling volume thereby confirming the longer term picture for equities. Below the VPOC we have some stronger price based support in place at 3170.

Overall, the outlook is extremely weak particularly for the Dow Jones YM Emini, which looks set to shed a further 700 to 800 points before finding any meaningful support and joining its sisters in their current congestion phases. Longer term, once we see a break away from the VPOC on each chart, all three could move significantly lower before either volume or price based support then comes into effect. For the Dow this is around 24,300, for the NQ it is around 10,400 and for the ES 3,100.

Where Next For The Three Sisters?
 

Related Articles

Craig Thompson
Bears Firmly In Control By Craig Thompson - Jul 04, 2022 2

Below is a daily chart of the S&P 500 Index. Here are the critical aspects of the chart:The index is in a downtrend defined by a series of lower highs and lower lows. Price...

Where Next For The Three Sisters?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Antonio lopez avendano
Antonio lopez avendano Sep 26, 2020 10:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks for sharing your knowledge , quite awesome charts and analysis🙌
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email