Princetontrader Futures Trading Education Daily Report May 12, 2017


The S&P Futures pushed lower the majority of the morning as low as 2379.  However, as with many of the bear opportunities of late it was squandered as the Bulls were able to pull off a full V retracement back to new regular session highs and a full test of the daily pivot at 2393.  We have seen a move back to 84/85 overnight but Bears need to produce another lower low today as we have three successive lower highs and lower lows.  Bulls want this to be a flag and will want today to be the day they breakout to new highs.

Thursday's Post: "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."