Princetontrader Futures Trading Education Daily Report December 19, 2016

MARKET VIEW

7:34am ET  Webcast to follow.  The S&P Futures has maintained it's 2273 all-time high for three sessions. The Bears continue to have potential to have a steeper pullback this week if they can convert the new 2256.60 weekly pivot as well as the 2247 support area. Bulls have been less than impressive since FOMC allowing matching highs in both the 2273 area and the 2267/68 area. As long as Bulls defend 2247 they have an opportunity to hold weekly pivot as support and convert 67/68 and 73. Watch the weekly pivot for clues as to which side will ultimately with the range.

Friday's Post: "The S&P Futures have settled into a trading range between 2247 and 2267.50. I doubt it will last much longer but while it does moves the the 2246/47 area are buys and resistance and lower highs in the area of 2267 are sells. The Daily Upper Bollinger Band ride has ended. Bears must follow through and prevent the Bulls from reengaging the band. That would lead to a squeeze. Bears will be faced with trying to convert a new weekly pivot come Sunday night. The Bears ability or inability to do so will set up the lean for the week. If you have had a good week as we have then don't over trade today and give it back. Take good setups, control risk and control size. Have a great weekend!"

Thursday's Post: "The S&P Futures failed to trade above the 2273 all-time high from Tuesday in the reaction to the FOMC decision to raise rates. This lower high created a lower high at 2267/68 and opened up a move to the 2246/47 we had discussed this week as weekly lows and a potential test point. The low was made at 2243 and the Bears failed to convert 2246/47 to resistance and we closed above at 2252. Bears have been unable to retest 2246/47 in the overnight. As a result we have traded as high as 2257. If the Bears are going to follow through today they will need to trade below 46/47 and preferably close below. Such a move would open up a late week test of the Weekly Pivot at 2228. The Bulls will need a new all-timer high in order to preserve the Upper Band ride on the Daily chart. The is the best opportunity for bearish follow through we have seen in over a week."

Wednesday's Post: "The S&P Futures made another all-time high at 2273 after the bears failed to convert the 2246/2247 area for the second consecutive day. We have the FOMC at 2pm et and the reaction to both the announcement and the subsequent press conference should define the next move and the month of December. The 2246/47 support area will be key on any downward reaction. Any upward reaction will need to make another all-time high and engage the Daily upper band to preserve the existing band ride and maintain pressure on the bears."

Tuesday's Post: "The S&P Futures reaction high was mentioned as an opportunity for bears yesterday. Bears put together a decent day but were unable to finish off the Bulls with a final leg down. The byproduct of that failure was a choppy afternoon that gradually led to a grind high into the close. That grind continued during last nights Globex session. We are currently testing the lower high from yesterday (2259 area). Bears will want to hold there to begin to establish 2259/60 as multi day resistance. Bears can build upon that. Bulls want to keep making higher lows and the touch the upper band to continue that band ride on the way to another new all-time high. Bulls have the clear advantage until Bears convert key areas of price."

Monday's Post: "After last week's march higher the S&P Futures gapped up Sunday night. The is essentially the opposite of last Sunday where we had a gap down to the Daily midband. The upper band ride remains in full force and effect through at least tomorrow. We have a new weekly pivot at 2228.60 and Bears will need to convert that level to resistance in order to have any chance at a directional week. Bulls want to keep the market in the same habit of making dips in the morning that grind to new highs near the close. 2255.75, 2251.50 and 2239.75 are all key levels to watch."

 

PIVOT TABLE

ES CHARTS

Daily Chart:

Hourly Chart: