Princetontrader Futures Trading Education Charts of The Day March 22, 2017
The S&P futures experienced the best bearish price action we have seen since election night. The day started with a push higher after repeated pre-market support at the weekly pivot followed by a false breakout that stalled at 2378.75. This stall turned into a hard break of weekly pivot which accelerated 20 handles before resting momentarily at the 2354 double bottom area. Another hard break of 2354 opened a hard leg down to the 2340 area. The Bears we able to engage the daily lower Bollinger Band. The close below the Bollinger Band has created a lower Bollinger Band ride. Typically, in these situations you will see the lower Bollinger Band act as resistance for the next 1-3 sessions. Bears have had a big day but the challenge now will be to hold the bear market rallies at bay and turn the tape into a sell rallies environment. The tape can remain sell rallies if we continue to close below the daily mid-band. The Bulls will need to try to fight back slowly. Any long trade is a counter-trend trade until Bulls can close above the lower Bollinger Band.