medium · Order Flow Analysis absorption-exhaustion-imbalance
Cross-market order flow check: The footprint in ES shows stacked selling imbalances at the session high. Simultaneously, the ZN (Treasury) footprint shows stacked buying imbalances at the session low.
What does this 'risk-off' signal suggest?
- Arbitrage activity that will lead to both markets returning to their opens.
- Conflict in the macro picture, suggesting a neutral 'no-trade' stance.
- A bullish sector rotation where money is moving into tech-heavy indices.
- High-conviction bearishness for equities as institutions sell stocks and buy bonds.
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