(CME:ESU13) - Bulls need a close above 1662.00: Equities continued higher this session before retreating as the S&P reached a high of 1667 against our major target of 1666. After New Homes Sales posted a miss, investors felt more comfortable with the likeliness of the Fed's backstop remaining in place. Momentum started as the major 1629.25 level was held last week and the following session had a close back above the next major level; 1647.50. This week starts off slow with data before Consumer Confidence tomorrow. A continued close above the previous swing highs of 1657.50 will be important to hold the immediate momentum. A close above 1666 would likely cause a melt up affect moving the market to 1681 within the week. Only a close back below 1647.50 will signal a failure and cause further liquidation.
Pivot- 1657.50 upon close
Resistance - 1666***, 1674*, 1679-81***, 1685.50*, 1695.50***
Support - 1653*, 1647.50***, 1631.25-1629.25***, 1611.25***
(NYMEX:CLV13) - End of peak consumption comes to an end, however risk in Middle East picks up: Crude Oil had a massively bullish move Friday hitting our major upside target of $106.91 with a high of $106.94 before closing at $106.42. The momentum continued higher this session as the market reached $107.37 and has experienced a slight pull back as the contract highs are being tested. A close above $106.91 will be a signal of the strength and likely send the market retesting the $107.85-95 highs. The dollar has been quiet this session, but the euro remains within a penny of its recent swing highs. If the euro begins failing (a stronger dollar) look for crude to trade lower as well. Also, watch for a close in the S&P above 1666 to be a sign of the crude market holding strength. Only a close back below 104.85-105 will show signs of a failure.
Resistance - 106.91***, 107.85-95**, 110**, 112.55***
Support - 104.89-105***,104.16***, 103*, 101.82***, 99.58-74***