ESU3- Nikkei leads the way Sunday night, U.S. stocks follow: After finishing Friday's session with tremendous strength, the equity market has picked up where it left off. The S&P closed at 1669 yesterday, above our major 1666 level and we are seeing exactly what we called for if a close above there were to occur; a quick move to 1681. With positive data out of China again last night, bullish momentum has continued. This time, equities in Europe have joined in on the rally. The market is currently on the highs and just below 1680. Resistance will come in at 1681 but with this type of strength, the bears want to be careful selling against this major resistance and wait to see if the market fails to close above here. The .618 retracement at 1674.25 did not stand in the way of this rally; bulls can look for a retest against here as a buying opportunity on the day. The ideal buying opportunity will now come in against the major 1666 level and on a slight new low on the session. However, it will be unlikely to see such a pull back today. A close back below 1666 though will begin to show signs of a failure and a likely consolidation heading into next week's FOMC.
Resistance - 1681***, 1687*, 1695.50***, 1700*, 1703-05***
Support - 1674.50**, 1666***, 1657.50**, 1645.25-1647.50***
CLV3 - Syria agrees to Russian plan to turn over weapons stockpiles (AP): Crude Oil began to stall out yesterday and finished the electronic session below $109.17. Despite a rally into the weekend and an open as high as $110.46, Crude sits roughly $2 from the highs. With news developing yesterday that Russia could become involved and take Syria's chemical weapons under UN protection and possession, oil began to sell off. Furthermore, Obama is having a difficult time convincing Congress that a strike on Syria is necessary. Light support at the $108.23 retracement level has helped to put in a low this session. Although the floor close was $109.52 yesterday, crude finished below $109 and has not seen a trade above there this session. Look for a close below the major $108.60 level to confirm signs of weakness. Bulls can look to use a new quick low against $107.85-.95 as a buying opportunity. A close below $106.91 will confirm a failure. Only a close back above $109.17 will help negate this bearish activity.
Pivot - 108.60 on a closing basis
Resistance -109.17***, 110-109.85**, 111.50*, 112.55***, 115.00**
Support - 108.23**, 107.85-95*, 107.45**, 106.91***