Is the stocks correction over?

E-mini S&P 500 (CME:ESU13) - Is the correction over? Equities are higher after the S&P 500 hit a low yesterday of 1680.50. The question of the day is did you buy 1681? We have been talking about backing the truck up as 1681 for the last week and a half on a retest. With investors getting a little nervous of all the taper talk this week, equities saw profit taking while the S&P traded more than 20 points from its high. The reality is nothing has changed too much, the Fed is talking about tapering being warranted possibly before the end of 2013 and as early as next month. What is this a change from? Tapering in the first quarter of next year? The reality is that the tapering is coming, be ready! With the S&P back above 1690 and currently trading on the highs against resistance at 1695.50, those who bought 1681 can look to lighten up ahead of Jobless Claims this morning. Chinese exports and imports were better than expected last night but still traders will be focused on inflation numbers out of there tonight. Look for a close back above 1695.50 as bullish signaling a retest to major resistance at 1703-05. We will only be concerned of a failure with a close back below 1689, signaling a consolidation. Furthermore we will look to exit longs with a close toward and below 1681.

Resistance - 1695.50**, 1703-05*, 1711**, 1721*, 1757****

Support - 1689*, 1681***, 1676-77*, 1666***

Crude oil (NYMEX:CLU13) - Buy the dips and sell the rips: September Crude Oil closed below $105 yesterday signaling that this market is in store for a consolidation lower. That is exactly what we are seeing this morning as the high has come in at $104.96, trading in nearly a $1 range reaching a low of $104.01. The next support level comes in at $103.67-85 and bulls can look to use this level as a buying opportunity as Pac-Man searches for new lows on the session. With better than expected export and import numbers out of China, traders need to watch the equity reaction to Jobless Claims to confirm this buying opportunity. A close back above $105, although positive will still keep this market in consolidation mode. A close back above $105.75 will be needed to signal a retest to $106.91. The bulls also have the Dollar working in their favor as it is lower today and has been grinding lower this week. Look for the dollar to remain negative to further help hold Crude prices above the $103.67-85 support level.

Resistance - 104.79-105***, 105.75-95**, 106.91, 107.52-88**, 108.82-93***

Support -   103.67-85**, 102.34*, 100.30-99.81***

About the Author
Rich Ilczyszyn

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.

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