Princetontrader Futures Trading Education Charts of The Day March 10, 2017

The S&P Futures are in the process of rolling from the March contract into the June contract. People get mystified by “the roll.”  Just understand that it is an administrative exercise more than anything these days.  Spread traders are few and far between these days.  The most impactful thing the roll does these days is screw with the charts for a day or two.  On to the market…  We discussed a daily midband test all week as the next strep after Bears were able to convert both the weekly pivot (2380/2376.75 June) and the 9 day sma (2373/2369.75 June) into resistance.  We tested and tried to convert the daily midband on Thursday.  The area was defended on the first test as we mentioned.  We are now into the next area of the thesis.  We are seeing one of two things with this bounce: a bear market type rally that the bears will defend and create another lower low or the beginning of an up move off of a higher low established at the daily midband.  Either scenario is plausible.  I have to give the bull scenario the advantage due to the current uptrend we find ourselves in on longer term timeframes.  If the Bears can turn this around and break the Thursday low then it would open up a potential move to the lower band and have sell rallies as the baseline position for the short term.  Should be an interesting couple sessions while this plays out.