Princetontrader Futures Trading Education Charts of The Day February 15, 2017
The S&P Futures continue to be in Upper Bollinger Band ride mode. The Bandwidth begins the day at 3.82 so there is room for more expansion. Above 4.5 is typically where I start to look for a turn. This means we remain in buy dips mode. I discussed yesterday that we would get a more pronounced dip versus the nonstop grind that we saw on Monday. We got that move to 2319.75 twice. Formed solid matching lows in the dip buy zone and the Bulls took advantage and took price back to a new all-time high. The midband on the hourly chart has been a decent guide for control of this tape. Bears tried to convert that level yesterday but couldn’t hold the key 2325 area as resistance once the bounce started. After 25 was lost new highs over 2329 were inevitable. We are currently testing the hourly midband (2334.43) after the move up to the current high of 2340. How price reacts to that level this morning is my top tell as to whether we will be getting more of the same or a more complete day from the Bears. Bears must breach the 2319.75 level (Tuesday’s low) in order to begin to put this upper band ride into doubt.