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