Princetontrader Futures Trading Education Daily Report May 5, 2017

MARKET VIEW

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.

Thursday's Post: "The S&P Futures held the support area yesterday and confirmed support after the 2pm FOMC announcement.  Price has steadily risen overnight and has printed a high of 2390.75 as I type.  The Bulls must continue the move higher during the regular session and make a new all-time high this week.  The pieces are in place for that move.  We still have the jobs report coming up tomorrow.  The Bears traded as low as 2375.50 yesterday.  Bears traded below the weekly low of 2477 but couldn’t hold it.  Bears need below 2375 to have any real argument about closing the week in their favor."

Wednesday's Post: "The S&P Futures spent the day drifting and chopping between the weekly pivot below and the 2388.75 above.  The market appears to be waiting for today’s Fed Decision at 2pm.  Bears need to convert 2377-2379.  Bulls need to convert 2395 and 2401."

Tuesday's Post: "The S&P Futures completed the upper band ride yesterday and now are stuck waiting on two significant data points – the FOMC tomorrow and the Jobs Report on Friday.  Bulls have yet to convert the 2394.75 lower high from April and the Bears tested but could not convert the 2379.90 weekly pivot.  Until one of those levels is converted we will continue to trade in a tight range while we wait on the catalyst."

Monday's Post: "The S&P Futures continue on an upper band ride.  Price made matching lower highs at 2388.75 last week and the pre-market push from the 2377 low (2375-79 support zone has held the past two tests) will need to get above 2388.75 this morning and open a test of 2394.75.  Failure to do so will keep the bearish argument that bulls are price/momentum exhausted alive and sets up a test of the new weekly pivot at 2379.9.  Bulls still have one job on the upside…a new all-time high.  Anything less leaves them exposed."

CHARTS OF THE DAY

PIVOT TABLES