(CME:ESZ13) - Looking to drift higher into Wednesday: Equities have traded quietly higher heading into the session and the S&P has so far seen an inside day. Traders await confidence data to follow building permits and housing starts. Traders may be quick to lock in gains through the last days in a light volume holiday week. The low yesterday was 1798.50; a slight new low that squeezes weak longs should present an attractive buying opportunity. The first major support level comes in at 1793.75-1796; traders will look to buy the first test against here. Only a close below this level may ignite further profit-taking this week. The 20-day moving average continues to grind higher, now coming in at 1775.50 and still aligning with 1774.50-76. This is the level that we are now using as a line in the sand. The 20-day moving average is a momentum indicator and a correction will be unlikely until we see a close below this level. With yesterday's high coming in at 1809.25, the next upside target of 1810-12.50 was achieved.
Resistance - 1810-12.50***, 1825***
Support -1800*, 1793.75-96***, 1782-85**, 1774.50-76*** 1766*, 1757***
(NYMEX:CLF14) - Iranian deal becomes non-event — use the technicals: Crude oil has continued to trade off of yesterday's new swing low to reach new highs since. The market traded to a low of $93.08 yesterday, taking out $93.17, which was reached Nov. 14. The market failed to follow through and began to reverse. The high this session is $94.69, just shy of the 20-day moving average, which comes in at $94.72; a close above here is needed to spark bullish momentum. With colder than average weather in the forecast, crude oil has been able to shrug off the agreement with Iran on higher than expected demand hopes in the near term. Still, the deal with Iran is unlikely to hit the market for at least six months. This has proved to be a buy the rumor, sell the fact trade. Swing high resistance comes in at $95.27, but many traders are looking at previous highs at $95.57 and $95.63. Still, the market must break through resistance at the 20-day moving average today.
Resistance - 94.72**, 94.90*, 95.27*, 95.57-.63***, 96.69-96.92***, 98.81-98.90***
Support - 94.19*, 93.08***, 91.50-91.60*, 90.40***