7:25am ET Webcast to follow. The S&P Futures had another look at the 2267.50 range top from last month. That level is also the pre-FOMC price from the December meeting. Post FOMC-minutes price traded as high as 2267.50 before finding resistance once again and pulling back to the 2260 area. Bulls are running out of chances to convert 2267-2273 and make a leg higher. The Bears showed nothing yesterday with the LOD being made at the open and price never really looked back. Bears must convert both the Daily Middle Band (20 day sma) and the 2244.67 weekly pivot on a closing basis in order to be in a position for any kind of pullback.
Wednesday's Post: "The S&P Futures had a volatile first day of 2017 with some really nice price action. The Bulls were unable to hold the morning highs and bears took advantage pushing price below the 2244.67 weekly pivot. However, in typical bear fashion price failed to establish weekly pivot resistance and the squeeze was on into the close. Bulls have continued to push up in the overnight trading as high as 2257. Bears must continue to defend moves to the 2260 area and if given the opportunity to push below need to convert daily mid-band/weekly pivot. Failure to do so will leave the market in a buy dips position and Bulls will walk things higher the rest of the week."
Tuesday's Post: "The S&P Futures traded as low as 2228 on Friday. This created a lower price low that has the potential to open the door to a much lower retest. 2228 was defended and price has move up and thtrough the new weekly pivot at 2244.67. Weekly Pivot was the ideal resistance area for Bears on Monmday night but after an initial pause the Bulls took price over and through. Bulls will want to hold above weekly pivot all week long now. Bulls have to take out the 2273 all time high or will likely be left with a 2269-2273 that looks more and more like a ceiling with each failed attempt. Expect volatility to creep back into markets certainly by next week."
Friday's Post: "The S&P Futures Traded as low as 2239.50 yesterday but failed to close below the key 2243 support area which bears we in a position to convert and push for more downside. As a result we traded as high as 2252/53 during the overnight. The midband on the daily chart was tested and held for the moment. Bulls need to get back to the weekly pivot (2260.27) and Bears must finish what they started yesterday in the 2239 area. daily midband support/resistance will be the best tell to determine who has the intraday advantage. Happy New Year!!!"
Thursday's Post: "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."