(CME:ESU13) - Continued close below 1630.00 keeps Bears in control: Equities continued their liquidation phase yesterday as Syria overshadows the growth and economic progress displayed so far this year. As many traders looked to book profits heading into the September FOMC meeting uncertain of not only a decision but an outcome of a taper. This is nothing more than taking money off of the table and securing gains. The S&P put in a low of 1626.25 yesterday; however, the market has held the low so far this session as it sits just above there. The major retracement level of 1629.25, which the S&P held just last week, has now been taken out and a continued close below here will leave the bears in control. Truly, this market needs to close back above the 1645.25-47.50 to signal a consolidation higher and negate this negative activity. With light data today, Pending Home Sales will be a major focus. Still, any news out of the White House concerning Syria, which it is said a military strike can come as early as Thursday, may cause more money to come out of equities and hit the sidelines.
Pivot - 1631.25-1629.25 a close above here can help a consolidation slightly higher
Resistance -1645.25-1647.50***, 1653*, 1657.50**, 1666***
Support - 1611.25***, 1600-03*, 1595**
(NYMEX:CLV13) - There are 2 ways to play the market now — you’re either LONG or your Flat: Crude Oil tested above $110 last reaching a high of $112.24, JUST shy of our major $112.55 target, reaching an 18-month high. Although the momentum is undoubtedly bullish, the market is more than $2 from the highs and currently back hugging the $110 level. A close above $110 will be a very big psychological barrier. Still, traders must not forget the EIA inventory report today, which has consistently shown a draw (bullish data) although it will be overshadowed by Syria. If there are any developments or signs that a strike may occur tomorrow, look for a retest of the sessions high and the $112.55 level. Yesterdays marked close was $109.01, the market must maintain a close above this level.
Resistance -110**, 111.50*, 112.55***, 115.00**
Support - 107.85-95**, 106.91***, 105.56-.88*, 104.89-105***