E Week's VWAP Perspective On ESM0 (SPX)

Looking at the ESM0 Futures contract with the weekly VWAP on an hourly periodicity we can observe an open inside of the previous week's value close area and a break above value on Monday. The VWAP slope is to the upside and bullish for now. Currently, we can see a balanced behavior or a consolidation phase - in this line the developing VWAP and DVAL are levels of possible support (VAL close level, too). Also to be noted are the LVN (Low volume nodes/areas) which are confluent wiith the VWAP levels. They could serve as supportive levels or areas as well. However, the daily perspective testing the bracket high which could lead to a bearish behavior. The best would be to simply leaning on the balance extremes on the lower periodicities and spoting possible absorption patterns to conclude a next move as we testing the lower extreme (developing VWAP) right now.

Looking at the figure below you can see the confluence between the previous week's LVN area and the DVAL.

(Click on image to enlarge)

 

Visit our trading community to learn a more indepth analysis process with various tools such as the VWAP or Footprint chart.

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