Princetontrader Futures Trading Education Charts of The Day March 17, 2017
The S&P Futures spent yesterday morning pulling back to the 2373 area. What could have been a trend down failed to materialize in the afternoon session. After a sloppy retest of the 2373 area the bulls we able to push price back toward the 2380 area. Overnight was flat to choppy. As we get ready to trade Friday there are two key concepts. The Bulls are technically in a band ride after two touches of some tight upper Bollinger bands. If the band ride materializes then the bulls will need to trade over 2390 today to maintain the band ride. Bears want to hold price under the daily pivot (2380.58) and get back to the 2372/73 area. 2372 is the pre-FOMC price so a break today is critical. Failure to do so makes yesterday’s weakness look like a retest of the FOMC breakout that holds. That’s how floors get made. We already have a floor at 2354. A floor at 2372/73 would open a move to a new all-timer high next week. If the bears can convert 72 their job is only half done. The daily midband is 2370 and the 9 day sma is 2371. Basically, think of 2370-2373 as a bull/bear price zone that each side must win to achieve their intermediate term objectives. Respect risk. Don’t overtrade.