Princetontrader Futures Trading Education Daily Report March 9, 2017
The S&P Futures remain is pullback mode from the week old 2401 high. The Bears have sealed the Weekly Pivot (2380) and the 9 day sma (2372) as resistance. The daily midband (2356) is open for a price test. Standing in the way are perfectly matching Globex lows of 2359.50. Bears top priority will be to break those lows. If the 2359.50 lows are allowed to stand all day that is the type of opportunity Bulls will use to establish reliable support and begin to push higher as we get into the end of the week. If the more typical ES scenario plays out we should see more rally selling similar to yesterday. The Bears have had weekly pivot on their side since the Sunday open. That coupled with the conversion of the 9 day from support into resistance places the advantage with the Bears for the day.
Wednesday's Post: "The S&P Futures continue to show increased volatility which has made for improved two-sided trading opportunities. The Bears held the 9 day sma and have now converted that level to resistance. This opens the daily mid-band for a test maybe not today but over the course of this week. The Bulls want to hold last night’s Globex low in the 2359 area. Bulls need to start taking back key areas like the 9 day in order to get weak shorts covering. The 2401 high is now almost a week old. As this high establishes itself we can begin to gain more confidence that a short term high is in and that the next battle will be fought at the midband."
Tuesday's Post: "The S&P Futures traded as low as 2367 on Monday as the Bears took advantage of the push down Sunday night. The dip buyers showed up during the morning turn and pushed price as high as 2377 area. Bears fought back and close below the 9 day sma on Globex for the first time since early February. That said, this places the Bears in the same situation they always find themselves in during an uptrend. The Bears must perform today. The Bears must follow through. The Bears don’t get to take a day off. Bears will want to spend the day below 2373 (9 day sma and current hourly midband)./ Bears have sealed the weekly pivot as resistance heading into the day. Now Bears must do the same with 2373 and break yesterday’s low of 2367. The Bulls want to defend 2367 and get back above 2373 and 2377. A close above the weekly pivot would give bulls the advantage for the rest of the week. Today is critical."
Monday's Post: "The S&P Futures are steadily making lower highs and lower lows since the March 1st high at 2401. The new weekly pivot at 2280.00 will be a critical bull/bear line for this week. If the Bears can seal the 2280 as resistance then the Bears should have an environment where they can convert the 9 day sma on a closing basis. The obstacle to the Bears getting any traction in this tape is their consistent inability to convert any area of real importance. The Weekly Pivots and 9 day sma would fit that criteria. Absent the Bears being able to hold a key area…all dips are buys."
Friday's Post: "The S&P Futures retraced some of the gains made on Wednesday. Bears have a unique opportunity to follow through on a prior days showing and attempt to isolate the 2401 high headed into next week. The key to this would be a close below the 9 day sma (approximately 2370). The 9 day sma has been firm support lows on February 24th and February 28th. Bulls want to defend the Globex low and make a run back into the 2386 area. The key to watch today is whether rallies are sold. We rallied in the premarket to 2380. 2380 is the hourly midband which we identified a few weeks ago as an area that when viewed on the chart as consistent resistance will be a tell for a more volatile, more two sided market. That makes the hourly midband something to keep an eye on today."
Thursday's Post: The S&P Futures spent yesterday punishing the Bears for failing to take advantage of opportunities early in the week to convert the weekly pivot at 2261.10. After the President’s speech Tuesday night failed to pull the tape back Europe opened and took the market higher, that price action continued into our regular session propelling price to 2401. As we get into the day after the key will be where is support on a pullback. 2389.50 is the best candidate currently as we have matching lows in that area on Globex. Bears would need to convert 2389 then 2370 and make a run at the 9 day sma to be able to gain any real traction. Bulls engaged the upper Bollinger band yesterday and would need to do so again in order to start another band ride. That would take 2408-2412. A tall order but achievable if Bears cannot hold key levels as resistance.