(CME:ESU13) - Look for a quick pop on the number-We are in a “Good news is Good news” environment: Equities have remained in check just as we expected while many analysts believe that a taper in September below $20 billion could already be priced in. The S&P traded to a new swing high yesterday at reaching 1358.25, and providing the bears with a great selling opportunity just as we noted to look for a slightly new high to sell. Also, as a reminder to trader, when selling or buying a new Pac-Man high or low, this is a trade that you get into and if it is not working in 10-20 minutes, you are out; you do not remain in this trade just because you are in it. You do not fall in love with this trade; remember it is "just a trade." The range overnight in the S&P is 1348.50 - 1355.75, just inside S1 and R1, look for a directional move in today's session. We will be looking for an opportunity to buy into the 1345-47.50 level with a target of 1366.
Traders must watch Treasury yields and if the Bond and Note prices move tremendously lower this will put downward pressure on equities.
Resistance - 1657.50**, 1666***, 1674.50**
Support -1645.25-1647.50***, 1639**, 1631.25-1629.25***, 1624.25*, 1611.25***
(NYMEX:CLV13) - Possible trade higher thru resistance as shorts cover into weekend- Crude Oil has tested the top and bottom side of $108 in this session reaching a range of $108.12-$108.92 as the market is right in the middle. Noting yesterday's report, Crude was able to close above the $107.85-.95 level signaling that it wants to trade higher. Still, even after a larger draw then expected in the EIA report yesterday, traders are awaiting jobs data. A much better than expected report will be a good sign for the economy and we believe that rising yields around the world are a good signal for growth hence oil demand and supportive to crude prices. Heading into the weekend traders do not want to be short Crude Oil with still Syria in the headlines. Now, an inline jobs report may keep crude in check because this will not be more growth than expected and in recent weeks Crude has not liked the sign of a September taper. Still, look for a close above $109.17 to signal a retest above $110. A continued close above the $108.23 level will be important to keep momentum heading into next week. Only a close back below the $107.27-$106.91 level will signal a failure.
Pivot - close above or below 108.23
Resistance - 108.60*, 109.17**, 110.07-110.15**, 111.50*, 112.55***, 115.00**
Support - 107.85-95**, 107.27*, 106.91***, 105.56-.88*, 104.89-105***
About the Author
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.
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