Princetontrader Futures Trading Education Daily Report April 6, 2017


The S&P futures put in a 30 handle range day.  The morning trade was a squeeze higher over the key areas of monthly pivot and daily midband.  Over the lunch hour price confirmed a trend up.  However, the bulls demonstrated an inability to sustain price above 2373 after the release of the FOMC minutes.  2373 held and price gave way to a strong move down the remainder of the day.  Price traded back down and closed below the 2348.10 weekly pivot.  We have traded as low as 2338 in the overnight session.  Heading into today the key will be whether the Bears can withstand the inevitable bounce that is already underway.  The parameters remain the same.  Defend daily midband.  Bulls inability to convert and the drag of the policy shift discussed within the minutes put the Bears able to maintain a sell rallies environment.  Much of that will depend to the Bears reaction to the bounce.  Daily midband must be defends after bulls failed to convert the area yesterday.  Bulls need back over and a positive Jobs reaction Friday morning.  Whatever happens the tape volatility has certainly returned with excellent opportunities and results.

Wednesday's Post: "The S&P futures spent another the day below the daily midband but with no new weekly low and no real progress from either side.  For a second consecutive day, we rallied into the monthly pivot and daily m id (20 day sma) into the close.  That area held as overnight resistance as of this writing for a second consecutive session.  The pressure remains on the bears to hold 57-60 and push the market down toward the lower Bollinger Band in the 2334 area.  Should bears be unable to do so the upward pressure will eventually be too much to contain and bulls will get a retest of last week’s resistance at 2366/67."

Tuesday's Post: "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."