Princetontrader Futures Trading Education Daily Report April 4, 2017
The S&P futures spent Monday below the daily midband after the new monthly pivot of 2357.50 went resistance. The hard push down stalled at 2340 (S3) and bounced back to retest the monthly pivot where price held as resistance again for a move back to the 2348.10 weekly pivot. The weekly pivot (which we were looking yesterday morning to get a test) held as support through the Europe open. Bears want to make a lower low today and then attempt to engage the lower Bollinger Band. The Bulls need to finally convert Monthly pivot and take back the daily midband. Bulls would prefer a close over 2364. Based on pure price action and rules the Bears have the advantage. Weekly pivot will be today’s battleground.
Monday's Post: "The S&P futures battled over the daily midband of Friday and that has extended through the Sunday overnight into this morning. It has been a very tight overnight range. The new weekly Pivot at 2348.10 should be tested early in the week and how that level reacts to priced will be critical in determining which side has the advantage. The Bulls want to avoid that test by converting Daily Midband to support and breaking above the 2366/67 resistance are from last week. Conversion of those areas sets up look at the all-time highs. Bears want to hold midband and regain the traction of the last couple of weeks by converting weekly pivot in their favor. This would potentially open a move to the daily lower band in the 2235 area. Enter today with an open mind and let price dictate your next move."
Friday's Post: "The S&P futures spent yesterday battling over and trying to convert the daily midband to support. R1 in the 2366 area held in the rally and after a very choppy to flat afternoon we have seen some pullback from the bears below the daily midband. The bears inability to take out the 2351.67 weekly pivot yesterday despite their premarket strength allowed the bulls to establish the daily pivot as support for the third session in a row. Once daily pivot was established the rally was on yet again. We closed just above the daily midband so I’m not really buy dips or sell rallies as I head into today. No clear winner has been established. Trade what you see is the way to deal with this morning. Bulls need over 2367, bear need under 2348. The 20 handles inside of that are just trading. Any move that converts that 20 handles price area sets up the April trade. It’s been a great month subscribers let’s finish strong, protect what we have and move on to April."
Thursday's Post: "The S&P futures continued their rally yesterday. Things played out as we discussed yesterday: “Should weekly pivot prove to be support the natural location of a move higher is 2362 daily midband. That would set up a showdown over what would be viewed as a double top if midband held. If Bulls convert daily midband then we find ourselves in a buy the dips market.” This is where we are. Bears are currently defending the daily midband after last night’s touch. However, that means little unless Bears convert weekly pivot as well. If weekly pivot is confirmed as support, then another mid band test is likely. Break weekly pivot and convert opens a decent amount of downside both today and tomorrow. It has been a good week and a good month. Let’s focus on solid setups and protect March."
Wednesday's Post: "The S&P futures continued their rally yesterday by holding daily pivot as support off the open and marching to the weekly pivot at 2351.67. This was one of the key upside tests that we have been discussing and bulls converted the weekly which started a second leg up into the 2360 area. The daily midband was not tested and price has retreated to the weekly pivot this morning after retesting the 56-58 area off Europe open. The key to today will be weekly pivot. Bulls must create solid weekly pivot support. We remain technically in a lower band ride and the bear will have a lot of work to do today to maintain contact with the daily lower Bollinger Band at 2333. Should weekly pivot prove to be support the natural location of a move higher is 2362 daily midband. That would set up a showdown over what would be viewed as a double top if midband held. If Bulls convert daily midband then we find ourselves in a buy the dips market. Don’t fight price. If price wants to rally be long. Respect your risk."