Princetontrader Futures Trading Education Daily Report February 7, 2017
7:21am ET Webcast to follow.
The S&P Futures followed our game plan on Monday despite a tape devoid of much price action. We said yesterday “. If weekly pivot does get tested today it will likely be support on the first attempt. Any subsequent retest will be critical.” The first test in the morning was support. That set up a second test in the afternoon which was critical. Price held the retest and established support. Bulls have used that support to retest the 2294 level. If the bulls are going to engage the upper Bollinger Band and make a new all-time high 2294 must be converted. If the Bulls cannot convert that will weigh heavy on price over the course of the week and Bears will be able to gradually take advantage of this hesitation. Bears need new Globex lows and a push below the weekly pivot and 9 day sma in order to begin to look like they have enough fuel to move down to the 2271.50 level
Monday's Post: "The S&P Futures battled at last week over two key levels. On the support side was the daily midband(20 day sma) which was tested every session but Bears were unable to close below that level. On the resistance side was the price area between the monthly and weekly pivots (2275-2280). On Friday after the jobs report the Bulls were able to move above 2280 and stay there for an entire session. As we begin the new week we find ourselves on the verge of another attempt at an upper Bollinger Band ride. Bulls need a solidly green day and some follow through. This will push more weak shorts out of their positions and start a push toward the current all-time high of 2299.50. Bears need new Globex lows and a push below the daily pivot in order to begin to look like they have enough fuel to move down to the new weekly pivot at 2282.4. If weekly pivot does get tested today it will likely be support on the first attempt. Any subsequent retest will be critical."
Friday's Post: "The S&P Futures continue to battle on either side the key price area of 2275-2280. Neither side can convert. Bears had yet another look at the 2263/64 area yesterday and price bounced just as it has with the other three moves to test. Bulls had nothing over the 2280 weekly pivot and have failed to get above again during last night’s Globex session. 2263/64 has been support since January 30th so a conversion of that area on a closing basis opens a test of the daily lower Bollinger Band (2251-2253). The optimist in me is viewing the upcoming Jobs Report as the potential tie breaking catalyst that gives the tape a decisive direction into next week. The proof is in the pudding so I’ll wait to see what price does. Bulls must solve 2280, Bears must solve 63/64. Have a great weekend!"
Thursday's Post: "The S&P Futures ran as high as 2285 off the open. This proved to be a false breakout and the Bears proceeded to take back the key price area of 2275-2280 and hold it the entire session. Once again price traded below the daily midband but bears couldn’t hold daily pivot on a closing basis. The key to the overnight trade has been the retest of the 2275 area (monthly pivot). Bears held that are and have pushed back down as low as 2264.50. 2263/64 has been support since January 30th so a conversion of that area on a closing basis opens a test of the daily lower Bollinger Band (2251-2253). Should bears fail to convert 2263/64 it would open up a test of 2275 again."
Wednesday's Post: "The S&P Futures spent a second day battling over the Daily midband (20 day sma). Bears have been able to trade below that key area during both sessions but were unable to hold those lows. Yesterday’s final attempt to convert 2263/64 failed and resulted in a squeeze up into the regular close. The new monthly pivot (2275.08) proved to be overnight support. Resistance is in the area on the weekly pivot (2280). The key to today, and perhaps the rest of the week, is which side can convert the price band of Monthly/Weekly Pivot (2275-2280). Win that band…win the day."