Princetontrader Futures Trading Education Charts of The Day January 25, 2017

The Bulls made their best case for a move upward out of the compression range yesterday.  Bulls defended 2262 off of the open and move above 2267.50.  The 2267.50 area finally converted to support after three weeks of providing range resistance.  The result was a directional push high that resulted in converting both 2273 and creating a new all time high over 2277.  These were the criteria we have been discussing for the last couple weeks as required for Bulls to win the range.  The Bulls task today is to engage the upper band and avoid the potential of a “headfake” day that sees us fall back into the range.  Bulls did not touch upper band yesterday (it was very close) so it is imperative to their case that they engage the Daily Upper Band today if they want to begin the potential upper band ride.  There is a decent amount of expansion coiled in these compressed bands.  If we do go on a band ride understand that they tend to go farther and longer than most traders give them credit for and fighting them can be a very painful experience.  The bears get no consideration until we close back below 2267.50.