Princetontrader Futures Trading Education Charts of The Day March 28, 2017
The S&P futures remain in sell rallies mode and we rallied yesterday. This rally doesn’t negate the downtrend on the daily chart. However, any rally must be defended by the Bears ideally at the 2351.67 weekly pivot and as a last resort at the daily middle Bollinger Band (20 day sma). A close above the 20 day sma would shift tape control to the bulls and put us back into buy dips mode. For now, its fine to be long rallies. The room was long for most of the rally yesterday. Just understand that you need to take profits as you find them and roll up stops to lock in gains. If you can’t bring yourself to get long, then you need to stand aside versus getting early short. Early shorts will have you bailing out when you should be getting into a short trade. Be patient and respect risk.