Princetontrader Futures Trading Education Daily Report December 22, 2016

MARKET VIEW

7:34am ET  Webcast to follow.  The S&P Futures were unable to convert the top of our range yesterday. 2267.50 has been resistance for 2 sessions and this precipitated the Bears taking price down to test the 2256.60 weekly pivot during the overnight session. The key heading to today's trade will be whether weekly pivot can hold. If weekly pivot can hold then the Bulls likely walk up price to the top of the range. Bears can trade down to the 2243-3347 range low if Weekly Pivot converts to resistance.

Wednesday's Post: "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!"

 

PIVOT TABLE

ES CHARTS

Daily Chart:

Hourly Chart: