Princetontrader Futures Trading Education Daily Report January 19, 2017


7:15am ET  Webcast to follow.

The S&P Futures spent another day in the range (2257.00-2268.00).  While we made no progress on longer term timeframes it did provide some good morning opportunities.  The afternoon trade was basically a 4 handle chop range with a small reach to the upper end of the range at the close. The 2267.50 area remains resistance and held through the overnight session.  Each side wants to accomplish their goals.  Bulls sustain a trade over 2270 and make a new all time high to initiate an upper band ride.  Bears want to convert weekly pivot and daily midband and test lower support areas. Compression continues on the daily chart. Resolution will come in time.  Until then take advantage of what the market is giving you.

Wednesday's Post: "The S&P Futures settled into a nice range trade yesterday between 2267.50 and 2257.00.  This range reflects the range that has prevailed over the last dozen or so sessions of compression on the daily chart.  The Weekly Pivot (2265.50) lays in between the edges of the zone but so far isn’t acting as support or resistance.  The daily midband (approx. 2260) was not able to be converted by the bears on a closing basis so price closed above once again as it has for twelve sessions.  The tasks for each side remain the same.  Bulls must sustain a trade over 2270 and make a new all-time high in order to initiate a upper band ride.  Bears want to convert 2257 and daily midband so they can make a run at the 2228 and 2195 area and a lower band ride."

Tuesday's Post: "Yesterday’s extended Globex session was as advertised.  Pretty non-existent.  The Bears broke below the weekly pivot at 2265.50 overnight and traded as low as the 2257/58 area.  That area was defended and we are now seeing a test of weekly pivot from underneath.  The Bulls want to take back weekly pivot and continue their weeks long quest to sustain a trade above 2270. The Bears want to establish that weekly pivot is resistance and make a run a last week’s low 2247/48.  Should neither side be successful then we will continue to compress in a decent sized range."

Friday's Post: "The S&P Futures continue to be in compression mode.  The ranges the last couple of days have been nice.  The tape is whippy but tradable.  The Bears made an attempt to break the bands to the downside yesterday morning with a move to 2248s.  Bulls defended the move and when the Bears couldn’t defend the daily mid band at 2258 and the weekly pivot at 2262.7 the full V move was inevitable.  Price moved back to 2267.50 at the close.  The Bulls continue to be unable to convert 2267.50.  Price resistance held through the entire Globex session.  Bulls must break above 2267.50 today and stay above and make a follow through run to new all-time highs.  The Bears are wounded enough to do so.  If Bulls cannot complete that move I expect a retracement to the bottom of the range.  That’s been the pattern of the week and absent a bullish move to the contrary it is the highest probability outcome going into the regular session."