After the Fed's non-statement, its back to the highs for equities and oil. Friday's jobs number is expected to boost both markets.
(CME:ESU13) The equity market yesterday could not figure out if it wanted to go higher or lower as the S&P widened its range upon each test. As the day continued, the S&P reached a lower low and a higher high, playing Pac-Man on stops. Some traders and investors have questioned why economic conditions only increased at a moderate pace and has made them hesitant to buy new market highs. This, accompanied with yesterday being the end of the month, had kept this market in check. Also, let’s not forget that the official Non-Farm Payroll report is still tomorrow morning. The high this session in the S&P is 1694 as the market cannot follow through to press new highs. A continued close above 1686.50 will be important to maintain positive momentum heading into tomorrow. Only a close below 1681, which has acted as a solid support level will be discouraging to the bull camp. This morning's Initial Jobless Claims and Manufacturing data, which shortly follow an interest rate decision out of the ECB, will be closely watched. Look for positive economic data to have a positive reaction to the market following a Fed that does not want to remove its support.
Resistance - 1695.50**, 1700**, 1711*, 1757***
Support - 1686.50**, 1681**, 1676*, 1670.50*, 1666.75***, 1648-51**, 1642*
(NYMEX:CLU13) Crude oil has shown tremendous strength this session beginning last night and into today as it is has traded nearly $2 higher at one point. The current price sits just below $107 after Chinese PMI data helped put to rest short term demand worries. Still with major data coming out of the U.S. today, a close above $106.91 is needed to confirm this momentum. The market shrugged off a build in inventories that temporarily kept this it in check and provided a selling opportunity at $105 ahead of the Fed. A close in electronic trading above the $105 level signaled that we might be in store for further gains. The low this session of $105.10 may not be reached, but bulls who missed the boat can look at a retest of $105.75 for an opportunity to buy when measuring risk.
Resistance - 106.91**, 107.88*, 108.93**, 110.00***
Support - 105.75-105.95**, 104.79-105***,103.67-103.85**, 103*, 101.50-72**, 100.26-99.76****
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