(CME:ESU13) - "Green means go:" Equities pressed to new five-year highs after the Fed refrained from cutting monetary stimulus. The S&P is at a new all-time high as "QE infinity" is a new reason to buy an already bullish market. The "infinity" part is obviously an exaggeration as this only prolongs the eventual reduction in the Fed's bond purchasing program for at least two months. Our major yearend target for the S&P remains 1757 and is in sight as the September contract trades to new swing highs above 1730. Traders will look to roll into December contracts today, which trades 6-7 points lower than the September. Major support will now come in the September contract at 1711 and December at 1704, just above the previous high and our intermediate term three star resistance. A close below these levels will signal a consolidation. The low this session in the Sept. is 1725 above what was a light resistance point, use this as support and a buying opportunity on the day for aggressive bulls. This translates well into the December contract with support at 1718.25. A close above 1723.25 in Dec, yesterday's high, will help keep this immediate bullish momentum intact.
Pivot - 1723.25
Resistance - 1739**, 1757****
Support - 1717.75-1718.25**, 1710.50*, 1704***, 1698.50**
(NYMEX:CLX13) - Supply Draw + Libya + FED = $108.00: Crude oil has seen a direct benefit from the Fed's no action on reducing bond purchases. As economic conditions improve, demand for crude at levels well above $100 has not been diminished. The EIA inventory report yesterday showed a much more than expected draw, a very bullish sign for crude. Today will be the last day trading the October contract, which has a session low of $108.13, holding what is now the $108.23 support level. Traders should be using the November contract going forward, which has reached a session high of $108.15, against a previous swing high and resistance at $108.24. The new major downside support and line in the sand is $106.23-$106.36. A close below here is needed to signal a failure. As long as equities keep their current bullish momentum and maintain a close above 1717, crude should be able to do the same. The major impact of the Fed's decision is a weaker dollar, thus commodities priced in dollars will have more value. Intraday support will come in at $107.54-$107.68 and present a solid buying opportunity. A close below new session lows of $107.34 will be discouraging to the bull camp signaling a likely consolidation heading into the tomorrow's session. Major upside resistance sits at $108.24-$108.43 and a close above here is needed to signal a run at the $111.34 highs.
Resistance - 108.24-108.43***, 109.42-109.68**, 111.34-111.50**, 112.25*
Support - 107.54-107.68**, 107.04*, 106.23-106.36***, 104.54-104.40** 103.74-103.93***