Stock indexes search for direction after Fed minutes selloff

(CME:ESU13) - Keep an eye on 10-year note yields for market direction: Equities have recovered slightly from a selloff following the FOMC Minutes yesterday. The S&P reached a new low last night of 1631.50, just above the next major support level at 1629.25. A close below this level will be extremely discouraging to the bull camp and signal a further correction that could go below 1600. Traders will be watching jobless claims but after the minutes it is unclear what type of reaction the news will bring. As the market has sold off more than 70 points from the highs, we have to believe that a tape has begun to be priced in and good data today will help the market trade higher. The high this session is 1645.25 as the market currently trades against it. A close back of 1647.50 will be important to signal a consolidation higher to help negate this negative activity.

Resistance - 1647.50***, 1657.50* 1666***, 1674-76**

Support -  1629.25***, 1611.25***, 1602*

(NYMEX:CLV13) - A close below $103 and bears take control: Crude oil has been trying to base at $103.50 after finishing yesterday's electronic session just above that level. Yesterday's marked session finished below the $104.16 level, which is very discouraging for the bull camp but Chinese Manufacturing data last night helped this market recover and brush off some of the fears of a September taper that will likely decrease demand. With the market back above $104, it will be very important to close above $104.16 but more important for the bull camp to see this market back above $104.89-$105 to brush off this negative activity. The market took another draw in EIA data with a grain of salt. A continued close below $104.16 will signal a trade to $101.82. Remember traders that this market can correct down below $100 and remain bullish down to $99.58-74.

Resistance - 104.89-105***,106.91***, 107.85-95**, 110**, 112.55***

Support -  104.16***, 103*, 101.82***, 99.58-74***

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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