(CME:ESU13) - This week’s employment data is key: Equities began to see profit taking yesterday as Congress debated Obama's intention's moving forward with Syria. Traders, though, should have had a field day with yesterday's trade action. First there was a Pac-Man above the 1649 overnight high putting in a high of 1650 which cleared tight stops and provided a great sell opportunity. Furthermore, the low yesterday came in at 1630.75, right in the major support pocket of 1629.25-31.25. Where is the market right now? Smack dab in the middle at 1639. There is no surprise whatsoever that this market remains in a trading environment ahead of ADP and Non-Farm Payroll. Today should be just the same as we have Trade Balance and Beige Book data to help push this toward support or resistance. Only a close above yesterday’s high of 1650 will signal a trade consolidation higher ahead into ADP. The same goes for the bears, only a close below 1629.25 will leave them in control. The current session high is 1642; look for a new high against 1645-47.50 to remain a solid selling opportunity.
Pivot - momentum on close above or below 1639
Resistance - 1645.25-1647.50***, 1651*, 1657.50**, 1666***, 1674.50**
Support - 1631.25-1629.25***, 1624.25*, 1611.25***, 1600-03*, 1595**
(NYMEX:CLV13) - A breakout of the range $104.50/$109.50 will provide us with direction: Crude Oil has traded in about a $1 range so far this session. As yesterday's missile launch turned out to be a test by Israel, crude remained in check against Friday's high and below the .618 retracement level of the recent range at 109.17. Traders are patiently awaiting further comments and action out of DC to gauge the likeliness of a strike on Syria. However, at the same time have to await comments out of Japan as well as jobs data here in the U.S. to gauge the likeliness of stimulus around the world to help encourage oil demand. As the market slips back, only a close above 108.23 will help encourage further buying. Only a close below 107.27-106.91 will likely signal a consolidation lower, until then, play both sides of the range today and look for the market to remain just that; range bound.
Pivot - 107.85-95 close above or below
Resistance - 108.23*(watch on a closing basis), 108.60*, 109.17**, 110.07-110.15**, 111.50*, 112.55***, 115.00**
Support - 107.27*, 106.91***, 105.56-.88*, 104.89-105***