S&P looks for 1698 to signal bull leg

(CME:ESZ13) - Don't believe the negative hype — use technicals to enter the market: Equities have continued to consolidate in a correction mode. The S&P reached a low of 1684.50 yesterday, covering the gap open from Sunday, Sept. 15 when the news that Summers’ had withdrawn his name was digested. The market provided a great trading opportunity in the short term off of this low before stalling out short of the 1698.50 level with a high of 1695. Yesterday's close was weak but the failure to put in a new low compared to yesterday’s session overnight has kept the bears in check. Today's GDP and Jobless Claims data will play a great directional role for this market. We may see a knee jerk reaction lower on positive data, but overall after the Fed has failed to taper because of growth concerns positive data should provide a bullish trade. If 1674 comes into play, we will look to this level as a great buying opportunity but only hold positions if the market closes above this level. A close below here should begin a bear consolidation lower. Only a close above 1698.50 will signal a bull leg to retest the highs.

Resistance - 1698.50**, 1704, 1710.50**, 1717.75-1718.25*, 1723.25**, 1739**, 1757****

Support - 1687.50**, 1684**, 1674***, 1660.75-1662.50***

(NYMEX:CLX13) - Looks like the Crude drop is running out of gas; we could see a short cover rally: Crude tested new swing lows late in the session yesterday but has been unable to press and wash out longs. After EIA inventories showed a build in Crude the market stalled out against our major three star resistance level at $103.74-$103.93. This session low is equal to last at $102.20, still failing to press to the first major downside target at $101.50-$101.64. The dollar has been very quiet this week following the sell off from last, and the overall lower move in the dollar over the last couple weeks from 83, has helped crude maintain price levels a lot easier. With momentum lower, and the Fed lowering its growth expectation from 2.3% to 2.0% today's GDP data and previous revisions will play a great role in dictating direction. A close below new lows session lows in Crude will likely put this market at $101.50-.64 but a close below here would send a test to $100. A recovery and close back above $103.07 will signal a consolidation higher.

Pivot - 102.65 directional momentum

Resistance -103.07*, 103.74-103.93***, 104.54-104.40**, 105.40*, 106.23-106.36***

Support - 102.20**, 101.50-.64***, 100.58**, 99.78***

About the Author
Rich Ilczyszyn

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.

Rich is featured expert/trader and contributor on CNBC's "Futures Now" Show, and has been quoted in multiple of top-tier publications, including: The Wall Street Journal, Associated Press, Bloomberg News and Reuters.

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