Stock bulls look to maintain gains amid Fed taper talk

(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***

About the Author
Rich Ilczyszyn

Rich Ilczyszyn is Founder and Chief Market Strategist of 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.

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