ES Update

 ES accumulation around as it broke through afternoon support (less defined), note the upside momentum toward the close and increasing volume as ES has now broken above the intraday highs.

ES-VWAP, for those of you not familiar with a VWAP, it is used frequently by institutions to gauge the effectiveness of the middle man who fills their orders (Market maker on the NASDAQ and Specialist at the NYSE). VWAP= "Volume Weighted Average Price"; the idea is that if a middle man fills an institutional order, for example a long order, at or below the VWAP then they did a good job and will likely get more institutional business. For a short they want to fill the order at or above the VWAP. A lot of the head fake moves and intraday movements are (although less frequent than years past because of High Frequency Trading) simply market makers/specialists trying to get price to an area in which they can fill a large order.Note how ES retreats from the channel representing 2 standard deviations from the VWAP, also note how there's support at the lower channel. Many people think that large volume spikes are institutional orders going through, more often than not, when orders are being filled volume is low and price is flat or moving in a favorable direction (down for a long order being filled). The volume that comes on a move like this is usually the result of limit and stop orders being hit which anyone with Totalview and to a lesser extent, level 2 can see. Wall Street's order book is much more extensive so they know what levels need to be hit to trigger volume, momentum chasers, etc, this is all part of mark up.