Princetontrader Futures Trading Education Daily Report December 29, 2016


6:50am ET  Webcast to follow.  The S&P Futures put in the entire key range during yesterdays session. Bulls made a final failed attempt to convert the range top of 21267.50 to resistance and once the 2260.27 weekly pivot was converted took price down to the range low of 2247. In the overnight session price tested the 2243 post-FOMC reaction low as well as the daily mid band (2244). Bulls need this potential double bottom area to hold and must mount a push back to weekly pivot and then convert that pivot to support. Bears must convert 2242/43 and mid band to resistance during today's session. If successful then bears can move down toward 2203. There is little support beyond 2243 on my chart so bears can gain some momentum downward if they can execute. Don't forget the holiday week. We could just chop here in a 4 handle range all day long. Don't overtrade, use stops, manage risk and size.

Wednesday's Post: "The S&P futures tested the top of our key price range yesterday 2267-2269 and failed to convert that area to support. Price then traded back to the weekly pivot (2260.27) where it held as support after hours. We are currently trading back in the 65/66 area. The key today will be whether the bulls can capitalize of the solid support at weekly pivot and move above 2269 to challenge the all time high. If not we are left with more tight range days between 2260 and 2269. If bears can break the weekly pivot then 2257, 2251 and 2247 await below. This remains in holiday mode. Lots of chop and small ranges. Take what the market gives you. Don't overtrade."

Tuesday's Post: "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."




Daily Chart:

Hourly Chart: