(CME:ESZ13) - Santa Claus Rally Blows Into Town: Equities have continued to struggle against all-time highs as the S&P has retreated from a failure to make a new high yesterday. The 1774.50 level has held strong keeping the S&P in check. With a low volume day yesterday look for traders to step in at the 1757 major support level today; a close below here will be very disappointing to the bull camp. A failure to hold this level will signal a correction lower. There is a 10 year noet auction today and this will be a good gauge of where money is heading. A close below 1766 will signal that momentum carrying over from Friday has begun to die out. Traders should also watch the Russell which has struggled at the 1100 area, a continued close below here will keep the bulls on edge. The 20-day moving average in the S&P has grinded higher, now at 1751.75. The market has been able to sustain a close above this level, but the bulls may be on edge if the index closes below the moving average as it will signal that momentum has started to die out.
Pivot - 1766*,
Resistance -1770*, 1774.50-1776***, 1785*, 1800**
Support - 1757***, 1750-1751.75*, 1742.75**, 1734.50-36***, 1723-26***, 1718.50**, 1703***
(NYMEX:CLZ13) - Brent Pops As UBS Rebalances Commodity Index Fund: Crude oil has continued to consolidate as a stronger dollar has kept the market in check against the major 94.76 level. Option expiration is this Friday and the market may remain range bound until then. Major headwind sits above here at 95.40 and previous lows at 95.95, a close above here is needed to signal a trade higher. Furthermore, the 93.71 level has been crucial to the downside being very supportive to the market. Crude traders await news out of a meeting in China of the top Communist Party officials and any policy changes that may be presented (China is the 2nd largest consumer of Oil). Also, last week’s inventory data showed less inventories than anticipated and with API tonight, traders will look to see if a new trend will begin. Look for a close below 93.71 or above 95.95 to signal another $1-2 move in either direction. Until then, continue to play the range.
Resistance -94.76**, 95.40*, 95.95***, 96.16*, 96.66-97.00*, 97.61-97.78***, 98.65*, 99.50-99.65***
Support - 93.65-93.71***, 90.00, 88.00