Stock indexes look for one more push before FOMC

(CME:ESZ13) - Looking for One More Push before the FOMC: Equities have continued to hold value well as we look to PPI and Confidence numbers today and the Fed begins its two-day meeting. This session's early high in the S&P is slightly lower than that of yesterday with 1761.25 compared to 1762.25. Friday's chart action began the likes of a bullish pennant but fundamentally, there is a lot going on this week that is slightly keeping the market in check. Traders will have tomorrow's ADP and CPI data ahead of the Fed, while the week closes out with a Bank of Japan Meeting and Non-Farm Payroll. Support will come in at 1754-57, which was held through the later part of Monday's session. A new low on the week compared to 1751.50 will likely lead to a further correction. The low of 1742.75 will be a line in the sand this week signaling a correction with a close below this level.

Resistance - 1770**, 1776*, 1800*

Support -1754-57**, 1750-51*, 1742.75**, 1734.50-1736***, 1723-26**, 1717.75-1718.25***, 1710.75*

(NYMEX:CLZ13) - News that Libyan Production is cut by 50% (250/300bpd) again spikes Brent $2.50, which Supports WTI: Crude Oil has continued to consolidate with a close above 97.61-97.78. Yesterday's high reached 98.82 and was marked close at 98.68, at our pivot level of 98.65. Since, Crude pulled back testing a low so far this session of 98.01. The momentum is clearly down although the market is taking a short breather. PPI and Confidence numbers today will play a large role in distinguishing the health of the economy and thus the demand of Oil. Still, look for a close below 97.61-97.78 to signal a continuation of the lower trade. A continued close above the 98.65 pivot will lead to a test to major resistance at 99.50-99.65, an area which many bears are looking to resell.

Resistance - 98.65*, 99.50-99.65***, 100*, 100.46**, 101-14-101.23***

Support - 97.61-97.78***, 96.66*, 96.16**, 94.76***, 90.00**, 88.00***

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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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