TRADING S&P 06/22/2017 Daily insight, S&P futures, ES

This is my daily preparation for S&P futures (ES) trading and it is for your educational purpose only and definitely cannot be considered as financial advice. There is a substantial risk in derivative trading and it might not be suitable for you. Don't rely on past performance as it is not indicative of future results.

Seems that last and this week reveal balanced mood and markets are waiting for new information to move further up or reverse. After inability to find new buyers last Tuesday (06/13) around all time high zone, market remained in the range and tried to check bottom of the range (price zone 2415-2020) once again. Bottom of the range held well as swing traders joined the market at long side. As a result, we had a gap upwards on Monday (06/19) opening, which allowed us to established a new all time high at 2451.5.
However, as I wrote yesterday, this has defined a downtrend for Tuesday and Wednesday. The major reasons for this were:

1. the new high 2451.5, was established during opening hour of the US trading session, when breach of 2443.5 level caused a liquidation of short positions and it was not supported by new mid and longer term buyers. As a result we witnessed average volumes and trading inside Monday's value range (2446-2449).
2. On Tuesday (06/20), trading session opened inside previous Monday's range, which revealed some neutrality. Soon swing and short term players became more active towards short side in anticipation that market will attempt to close the gap from the Monday.

For today, Thursday (06.22), most of yesterday's levels remain relevant. Yesterday most trading volume occurred at 2433, just above June's highest volume zone between two most traded prices 2432.00 and 2429.75. This revealed that despite some bearish attitude, market was driven mostly by short term traders. As of premarket it seems that we are likely to open around these levels as well, which shows that there was no major attitude change among investors. This means that 2432-2427 range expected to perform as an important support zone during today's trading session. In case sellers will be very active in this zone at the open we are likely to recheck previous week's value are bottom, which is 2420 level. In case buyers will dominate opening hour we are likely to witness an attempt towards yesterday's high 2440, after which major resistance areas would be around 2442 and 2447 in attempt to establish a new high. However, I do not expect such significant move and expect that most trades will occur inside yesterday's range.