Princetontrader Futures Trading Education Daily Report December 27, 2016

MARKET VIEW

7:22am ET  Webcast to follow.  The S&P Futures remain in holiday mode during the overnight session as we put in less that a five handle range. The key to the day will be whether the new weekly pivot will establish itself as either support or resistance. Where we close relative to the weekly pivot will provide clues as to which side can maintain tape advantage (buy dips or sell rallies). That said I am expecting a very quiet week as is typical of this time of year.

Friday's Post: "The S&P Futures spent most of yesterday's session below the weekly pivot. Bears pressed the advantage they gained by holding the top of the trading range at 2267/68 for two sessions. The Bears took price as low as 2251.50 (which coincided with S2 of the daily pivot before dip buyers stepped in and bounced the tape closing once again above weekly pivot. A quick look at a daily chart puts this weeks trading into perspective - tight ranges, choppy and so far headed nowhere. Very typical of late December. This too shall pass and January is typically a fantastic month for trading, plenty of volatility for all. Take this time to get your plans together for 2017 and enjoy the Holiday season. Bear want to break 51.50 and go to work of the 47 range low. Bulls want to hold weekly pivot and convert 2261, 2265.50, 2268 and 2273. Both sides goals may have to wait for next week. Wishing everyone who celebrates a very Merry Christmas!!! Markets are closed Monday."

Thursday's Post: "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."

 

PIVOT TABLE

ES CHARTS

Daily Chart:

Hourly Chart: