(CME:ESZ13) -Tune out the negative media "fear mongering" use the technicals: Equities soared yesterday as traders and investors alike become hopeful that a budget deal is within reach in Washington, and soon. The S&P reached the highest level since Monday, Sept. 23, less than a week after the FOMC left its bond purchasing program unchanged. This is where the market began correcting as investors locked in profits to finish the third quarter and plan for a crisis in Washington. Yesterday's high was 1706.75, and today we continued higher reaching 1709.75. A close above the 1710.50 level will keep momentum immediate term bullish. The 1717.75-18.25 level is what all traders are watching, the highest all time close; a close above here will signal that we should be on our way to test our yearend 1757 target. Only a close back below 1698.50 will signal a failure.
Resistance - 1710.50**, 1717.75-1718.25*, 1723.25**, 1739**, 1757****
Support - 1704*, 1698.50**, 1684-87***, 1674***, 1660.75-1662.50***
(NYMEX:CLX13) - Daily Inside "Bar" keeps technical bears on their heels, impending Nov expiration keeps oil trapped in a range, which provides a great opportunity to take quick trades: Crude Oil has held nearly a $1 range last night as it has given up gains from yesterday after stalling out at the major resistance level at 102.20-102.37 of 102.62 yesterday and 102.46 in today's session. A stronger Dollar on hopes that we see a budget deal in Washington has been a major factor in keeping Oil in check to the upside. Although the trend is down, traders are finding value at levels just above $100 to help keep this market afloat. Look for a close below 101.05 in order to ignite a new bear leg lower. Only a close back above 102.41, yesterday's marked floor close will signal a rejection and consolidation higher, taking control out of the hands of the bears. Continue to play the levels until a new swing low close is established.
Pivot - 101.50-.64
Resistance - 102.20-102.37**, 102.65*, 103.07*, 103.74-103.93***, 104.54-104.40**
Support - 101.05-101.16**, 100.58**, 100-99.78***98.00-96.00