E-mini S&P 500 (CME:ESU13) — Close above 1705, bulls remain in control: Equities have continued to climb being lead in the last 36 hours by the Nikkei, which has an amazing chart setup, holding a trend line and .618 retracement. It took the S&P what felt like long enough yesterday morning but it finally jumped over 1700 and seems well on its way to our major year-end target of 1757. The NASDAQ has had tremendous strength but the chart setup in the Dow seems even better as it has left major tails and a great trend line hold from mid week, as each index has taken turns leading the way higher. Major support will now come in the S&P at 1695; a continued close above 1700 is needed to keep such positive momentum. We believe that the sentiment is too strong right now to see this thing turn around and only a close below 1695 can start forming doubters. There is a "good news is good news and bad news is good news" feeling coming into today's Non-Farm Payroll Report. The S&P has held a 3 point range over night and our next intermediate term target is 1711 and bulls can look for a quick dip below 1700 or even look for a test to 1696 to find a buying opportunity.
Resistance - 1711**, 1721*, 1757****
Support - 1695.50**, 1689*, 1681***, 1676*
WTI Crude Oil (NYMEX:CLU13) — Look for algos to push market higher to trigger stops above $108.93: Crude Oil continued higher with tremendous strength in yesterday's session providing enough momentum to test the contract highs early on at $108.93. However, last night's high reached only $108.82 before retreating and the market is currently over $1 from there. We are aligning this session's lows with previous highs at $107.52 to look for support on a closing basis. Bulls can look for a quick dip against $106.91 as a buying opportunity. As long as the equity market can maintain a positive close and the S&P above 1700, we see crude holding its strength. Furthermore, it has been reported that U.S. embassies in many Muslim countries will be closed Sunday due to a "credible and serious security threat," and just the sentiment of this news is bullish for crude. Traders will be looking for a reason to buy this market into the weekend. Only a close back below $104.79-$105 will start to show a failure and likely further correction.
Resistance - 108.82-93***, 110.00***, 113.14***
Support - 107.52-88**, 106.91***, 105.75-95**, 104.79-105***, 103.67-85**
About the Author
Rich Ilczyszyn is Founder and Chief Market Strategist of iiTRADER.com. Rich excels at creating dynamic trading strategies for clients that establish solid positions, while remaining flexible enough to capitalize on market opportunities when they arise. By identifying market trends, breakouts, and failures in a timely fashion, Rich presents clients with the opportunity to realize their objectives while effectively managing their risk.
Rich is featured expert/trader and contributor on CNBC's "Futures Now" Show, and has been quoted in multiple of top-tier publications, including: The Wall Street Journal, Associated Press, Bloomberg News and Reuters.
Follow Rich on Twitter: @iiTRADER