(CME:ESZ13) - The wild card trade is they reach a deal: Equities have stalled out on a failed recovery to retest unchanged yesterday. The S&P is using the 1384-87.50 gap from Sunday night two weeks ago as a major level with highs intraday yesterday at 1387.50 and highs this session of 1383.50. It is said that Weekly Jobless Claims will be released as usual today, so look for this number to have a strong impact on the market where a stronger than expected number could help pop the S&P above the 1387.50 resistance (good news is good news). The low this session is 1373.50 but has found support at the key 1374 level. A close below here will signal a further move lower. Although equities have performed well during budget issues and after a deal is finalized, many investors are fearful to step in at these levels. Remember, the Fed is still televising a game-on backing and the S&P has corrected 3.5% from the highs following their most recent meeting to the lows this last Sunday night. Also, Chinese non-manufacturing rose to a six month high last night. Do not forget that we are heading into earnings season with a positive outlook. Traders, though, can keep trades short, use the levels to capitalize on headline driven swings.
Resistance -1684**, 1687.50**, 1698.50**, 1704, 1710.50**
Support - 1674***, 1666*, 1660.75-1662.50***, 1656.75***
(NYMEX:CLX13) -The Tropical storm in the Gulf and the Keystone pipeline headlines cause "Shorts to cover," pushing the markets higher: Crude Oil stockpiles increased twice as much as forecast but the market was still able to stabilize and rally back above $104. The major driver for this bullish run in Crude yesterday was the early development of a storm in the Gulf. Many traders and investors were fearful that this could form into a Hurricane. Most recent updates show that the storm is a weaker system than forecasted earlier. Also, the Dollar Index trading back below 80 and algos and traders used this as a buy signal for commodities. The low this session is $103.45 and the market has still been hugging the $104 level. Major resistance sits at the $103.74-$103.93 level, look for a close above here for a second day in a row to show confirmation that Crude will hold value heading into the weekend as traders buy as a precaution ahead in case the storm develops and further. Still strong resistance sits at $104.40-$104.54, but a close above $104.95 will signal a likely test to major $106.20 which has come into play over and over again. Only a press to new lows and a close below $103.07 will signal a failure.
Resistance -103.74-103.93***, 104.54-104.40**, 104.95*, 105.40*, 106.23-106.36***
Support - 103.07*, 102.65*, 102.20-102.37**, 101.50-.64*, 101.05**, 100.58**, 99.78***