Princetontrader Futures Trading Education Daily Report December 21, 2016

MARKET VIEW

7:34am ET  Webcast to follow.  The S&P Futures opened the regular session with a strong move above the current range. However, the proved to be a false breakout and the remainder of the day was spent chopping between 2267.50 and 2262 with multiple false breakdowns by the Bears as well. You can feel the tape thinning out for the holidays so respect risk and control size. The goals of each side haven't changed headed into Wednesday. Bulls need to convert 2267.50 and make a run toward the 2273 all-time high. Bears want to convert the 2256.60 weekly pivot back to resistance after losing that level on Monday.

Tuesday's Post: "The S&P Futures remain in the 2247-2267.50 range and the weekly pivot at 2256.60 did its job of establishing yesterday's winner. The bears inability to convert 54-5 led to a move to the top of the range in this morning's pre-market. Bulls need to convert 2267.50 while the bears needs below 54-56 and ultimately 2247."

Monday's Post: "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."

 

PIVOT TABLE

ES CHARTS

Daily Chart:

Hourly Chart: