ESU3 (CME:ESU13) -Green means GO! Apple-Pepsi-Ford all beat:
Equities have continued to consolidate as pull backs in the S&P have remained much calmer than those of the Nasdaq. The NQ though was able to hold the major support level at 3025 with a low of 3023.50 before recovering into and much more after the bell following Apple’s earnings. The S&P has sat this out and left the volatility to the NQ as the S&P has consolidated and failed to get to our major support and attractive buying level just above 1680.25. With the NQ up just under 1% today, it is merely back to where it was prior to yesterday's sell off. Now the major focus will be New Home Sales this morning to accompany earnings announcements today from the likes of Ford and Boeing. We still view a pull back to 1681 as a great entry but more aggressive bulls can look to a retest of this session’s and last low at 1686-87. However, bulls do not want to see a close below 1686-87 to signal a strong hold in any positions bought. Keep in mind that traders may get impatient if the S&P fails to get above 1700 this week.
Resistance - 1700*, 1711*, 1757***
Support - 1686-87*, 1680.25***, 1666.75***
CLU3 (NYMEX:CLU13) - It’s all about the inventories, last night’s API -1.4mil : Crude Oil put in a low yesterday of 105.46 as it held major support and has recovered into today's session trading more than $2 higher. As we noted yesterday, look for a close below $106.92 to show signs of the market getting heavy; however, the recovery stretched back above $107 and was marked at $107.23. This is a tremendous hold in the eyes of the bulls. Also, the U.S. Dollar Index has been very quiet and although it has been able to significantly follow through to the downside, trading more than a point from last week's high has provided the needed support to help deflect a correction in the crude market. Traders will be closely eyeing EIA inventories today to help maintain this momentum. Continue to watch the $106.91-94 level on a closing basis but only a further correction below the $104.79-$105 level though signal a failure as this will also be new lows compared to yesterday. Remember, this market can remain bullish all the way down to $99.
Resistance - 107.88*, 108.93**, 110.00***, 110.65*, 113.14***, 115.00**
Support - 106.91**, 104.79-105***, 103.85**