Princetontrader Futures Trading Education Daily Report March 31, 2017
The S&P futures spent yesterday battling over and trying to convert the daily midband to support. R1 in the 2366 area held in the rally and after a very choppy to flat afternoon we have seen some pullback from the bears below the daily midband. The bears inability to take out the 2351.67 weekly pivot yesterday despite their premarket strength allowed the bulls to establish the daily pivot as support for the third session in a row. Once daily pivot was established the rally was on yet again. We closed just above the daily midband so I’m not really buy dips or sell rallies as I head into today. No clear winner has been established. Trade what you see is the way to deal with this morning. Bulls need over 2367, bear need under 2348. The 20 handles inside of that are just trading. Any move that converts that 20 handles price area sets up the April trade. It’s been a great month subscribers let’s finish strong, protect what we have and move on to April.
Thursday's Post: "The S&P futures continued their rally yesterday. Things played out as we discussed yesterday: “Should weekly pivot prove to be support the natural location of a move higher is 2362 daily midband. That would set up a showdown over what would be viewed as a double top if midband held. If Bulls convert daily midband then we find ourselves in a buy the dips market.” This is where we are. Bears are currently defending the daily midband after last night’s touch. However, that means little unless Bears convert weekly pivot as well. If weekly pivot is confirmed as support, then another mid band test is likely. Break weekly pivot and convert opens a decent amount of downside both today and tomorrow. It has been a good week and a good month. Let’s focus on solid setups and protect March."
Wednesday's Post: "The S&P futures continued their rally yesterday by holding daily pivot as support off the open and marching to the weekly pivot at 2351.67. This was one of the key upside tests that we have been discussing and bulls converted the weekly which started a second leg up into the 2360 area. The daily midband was not tested and price has retreated to the weekly pivot this morning after retesting the 56-58 area off Europe open. The key to today will be weekly pivot. Bulls must create solid weekly pivot support. We remain technically in a lower band ride and the bear will have a lot of work to do today to maintain contact with the daily lower Bollinger Band at 2333. Should weekly pivot prove to be support the natural location of a move higher is 2362 daily midband. That would set up a showdown over what would be viewed as a double top if midband held. If Bulls convert daily midband then we find ourselves in a buy the dips market. Don’t fight price. If price wants to rally be long. Respect your risk."
Tuesday's Post: "The S&P futures remain in sell rallies mode and we rallied yesterday. This rally doesn’t negate the downtrend on the daily chart. However, any rally must be defended by the Bears ideally at the 2351.67 weekly pivot and as a last resort at the daily middle Bollinger Band (20 day sma). A close above the 20 day sma would shift tape control to the bulls and put us back into buy dips mode. For now, its fine to be long rallies. The room was long for most of the rally yesterday. Just understand that you need to take profits as you find them and roll up stops to lock in gains. If you can’t bring yourself to get long, then you need to stand aside versus getting early short. Early shorts will have you bailing out when you should be getting into a short trade. Be patient and respect risk."
Monday's Post: "The S&P futures remain in sell rallies mode and in the middle of a lower band ride. Bears did what they had to do on Friday by pushing price down to the lower band in the afternoon. This established control into the Sunday open. Overnight we have traded as far down as 2317.75. Expect rallies this week just as we had rallies last week. You can be long the rallies but understand that most likely those rallies are sells. The tape continues to be volatile so you need to respect risk. The weekly pivot is 2357.67 and that should be the most any rally should print this week if we are to remain in a bear dominated sell rallies tape. The key for the bears is to defend the rallies. The key for traders is to resist being too early short on the rallies. Take profits as they come and get risk out. Should be a fun week."