Princetontrader Futures Trading Education Daily Report February 9, 2017

MARKET VIEW

8:13am ET  Webcast to follow.

The S&P Futures attempted to break below the range low yesterday with a move into the 2281 area.  As with most range trades it looked like it had a change to stay down but ultimately was a fantastic dip buy and we ground our way back to the range highs.  Bulls stalled at 2291/92 for most of the night before popping over the top to meet the range high again at 2294-96.  Today’s trade will hinge on whether the Bulls can finally push above the range and stay there.  Bulls will need a new all-time high and engagement with the upper Bollinger Band.  Bears will want to defend the range high and go after the weekly pivot again. Range trades require patience.  Too early and you will take unnecessary heat.

Wednesday's Post: "The S&P Futures continue on in  what has been a fairly frustrating week for both sides.  Bears want to convert weekly pivot. Each trip to the mid-2280s has been support.  Bulls want to convert 2294/95 and do a new all-time high.  Each attempt has resulted in resistance.  The majority of the week has been chopping between these two areas.  The goals for each side remains clear.  Convert the range.  The next leg of the market goes to the side who can accomplish that task.  Don’t get chopped up waiting for a winner to emerge.  Tapes like this grind up traders."

Tuesday's Post: "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!"

CHARTS OF THE DAY

PIVOT TABLES