medium · Order Flow Analysis absorption-exhaustion-imbalance

In the E-mini S&P 500 (ES), if the previous day's close was 4,515.00 and the market is currently trading at 4,510.00, what is the likely psychological state of institutional long holders?

  1. They are 'trapped sellers' looking for an opportunity to buy back their positions.
  2. They are indifferent because futures traders only care about Volume-Weighted Average Price (VWAP).
  3. They are profitable and likely to add to their positions at this discount.
  4. They are underwater and may be pressured to liquidate if selling intensifies.

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