Princetontrader Futures Trading Education Daily Report May 18, 2017

MARKET VIEW

The S&P Futures provided some relief from the compressed up move and broke several key support levels including the weekly and monthly pivots as well as the daily lower Bollinger Band.  We are due for some type of reflexive bounce but as long as monthly pivot and lower band hold in price all rallies are sells.  The 2383 daily midband would be as far as bulls can take a rally.

Tuesday's Post: The S&P Futures chopped the day away after a promising open to the upside.  Bulls squandered an opportunity to print new all-time highs but Bears may just be delaying the inevitable as the entire day was spent solidly above the Weekly Pivot.  No meaningful retrace was seen overnight so we head into the regular session with the Bulls holding a clear advantage.  Higher lows since the 2379 low continue to be printed.  False breakouts and false breakdowns continue to be the norm.

Monday's Post: The S&P Futures put in another day of chop in and around the weekly pivot on Friday to cap off what was a week that really went nowhere.  False breakouts and false breakdowns were the norm.  The new weekly pivot is only .40 away from the old weekly pivot…2390.50.  The area has been fought over in the Globex session.  Bulls put in a higher low on Friday and now must print another new All-Time High.  Bear need to test last week’s low at 2379.  That price matches with the current Daily Midband.  Take profits where you find them.  This may be a week where, absent a catalyst, that runners may have trouble getting going.

Friday's Post: 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."

CHARTS OF THE DAY

PIVOT TABLES