Princetontrader Futures Trading Education Charts of The Day March 21, 2017
The S&P futures spent Monday gravitating back to the 2369-2373 zone. We traded as high as the daily pivot at 2376 but the bulls were unable to capitalize on the up move and we retraced below the 2369 support area and down to our proprietary lower level at 2365.50. At that point, the Bears had an excellent opportunity to convert not only the 2369 supports zone but the weekly pivot, nine day SMA in the daily mid-band and establish themselves as being potentially in control for the week. What happened instead is what has typically happened when the Bears get to keep moments…we rallied. The bulls took price back into the 2372 area. We closed inside the original 2369 to 2373 zone. In short, we resolved none of the issues that were pending heading into Monday's trade. The Bollinger bands on the daily chart remain compressed and we are setting up for directional move. The trading focus should be on taking good setups, respecting risk and not overtrading in this environment. The bulls need to convert 2376 and attempt to convert last week’s high of 2388.75. The Bears need to spend Tuesday below 2369, break the Monday low of 2365.50 and attempt to convert the prior floor at 2354 which is the area of the daily lower Bollinger band.