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**
