Stocks look to Alcoa for momentum as shutdown continues

(CME:ESZ13) Equities are trading nearly unchanged this morning as the S&P 500 has found support with a low of 1662.75 just above the major three star support level. The market is clearly consolidating while Washington sits deadlocked. If we head into next week and Oct. 17 with little to no progress, this market will likely be lower. With no data out of the government to give traders momentum, we will be looking to Alcoa to kick off the heart of earning's season and provide that much needed momentum. This session's high is 1670.75 after yesterday reached 1679.50 before selling off late afternoon. A close above 1674 is needed to help stabilize this market to the downside. Furthermore, a close above 1684-87 will help ignite a bullish move higher. Although further support sits at 1656, a close on a new low and below 1660.75-1662.50 will be bearish and very discouraging to the bull camp.

Resistance -1674***, 1684**, 1687.50**, 1698.50**, 1704, 1710.50**

Support - 1660.75-1662.50***, 1656.75***, 1645.75*, 1643.50**

(NYMEX:CLX13) Crude Oil has recovered more than $2 from yesterday's early low reaching a high of $103.94 this session. Major resistance sits at the $103.74-$103.93 level and a close above here will be needed to jump start bullish momentum. Above here, a close through the two star resistance pocket at $104.40-$104.54 will be needed to confirm a bullish leg higher that should test $106.23-$106.36 major resistance. Producers had shut down 62% of the regions oil ahead of the storm, so yesterday's early drop was contributed to the passing with no damage. Also, positive data out Europe can be attributed to part of this rally. Earnings from Alcoa will also help give us a picture of the global market place and demand to help supplement no government data. A close back below $103.07 will negate this morning's bullish momentum.

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***

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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.

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