Princetontrader Futures Trading Education Daily Report May 11, 2017


The S&P Futures have established a second potential lower high on the daily chart versus the Sunday night high.  Price printed 2397 on the close after the Bears failed to convert weekly pivot to resistance.  Thursday becomes a critical day.  Bears have failed to convert weekly pivot/9 day sma for 3 sessions while making a series of lower highs vs the weekly high.  Either we are flagging for a move to a new all-time high or a hard break today could begin the move toward the 2370 area.

Wednesday's Post: "The S&P Futures have established a potential lower high on the daily chart versus the Sunday night high.  Price printed 2400 during the morning turn and Bears were able to maintain pressure the rest of the day.  The key to the Wednesday trade will be whether the Bulls can hold the weekly pivot (2390.90) as support or whether the Bears can convert Weekly Pivot and the 9 Day sma to resistance and attempt a move toward the 2370 area over the course of the week."

Tuesday's Post: "The S&P Futures failed to challenge the Sunday night new all-time high of 2403.75.  As we discussed we tested the new weekly pivot very early in the week (2390.91).  Bulls defended the weekly pivot but failed to push beyond the regular session opening print of 2395.75.    Bulls must follow through of the Sunday highs and attempt to engage the daily upper band 2414 in order to seize the next leg in the market.  Bears want to convert the weekly pivot and the 9 day sma.  That conversion opens the doors to a test of the daily midband."

Monday's Post: "The S&P Futures reacted to the French election results by printing a new all-time high of 2403.75.  Price has pulled back since but has held overnight at the 2394.42 daily pivot.  The new weekly pivot resides just underneath at 2390.90.  Bulls must follow through on last night’s strength or the new all-time high begins to look more like an exhaustion top.  In order for the Bears to be taken seriously they will need to close below weekly pivot and use the rest of the week to keep rice below the weekly and make gradual lower lows."

Friday's Post: "The S&P Futures despite FOMC and a healthcare vote remain in the same range 2475 on the downside and 2387-90 on the upside.  The trading in between has been whippy and choppy.  Today is the jobs report and Sunday the French runoff election.  The number of things the tape is waiting for is reducing.  Whether this translates into immediate volatility remains to be seen.  Don’t get chewed up trading a tape that wants to do 3 handles ranges then whippy moves that immediately whip back.  Better tapes will come.  See how the tape reacts today.  Trade the tape you have not the tape you want."