(CME:ESZ13) - Looking For The Market To Close Lower As Funds Take A Little Money Off The Table: Equities have begun to show some signs of correction as traders head into the later part of the week. Yesterday was the first time the S&P put a lower low in than any previous session since Nov. 20. Also, the first time it reached below 1800 in a week, nonetheless close below it at 1799.75. Although all traders are prepping for tomorrow's ADP, European GDP, ISM Non-Manufacturing and New Home Sales, there are some small data points today. The low so far this session has held the 1793.75-96 support pocket, a close below here will signal a small correction. The 20-day moving average and short term momentum indicator as we have been mentioning continues to rise and comes in today at 1784. This is where the bigger picture comes into play. A close below the 20-day moving average and furthermore the major 1774.50 level we could start seeing a longer term correction. Bears can use a retest to session highs and the 1800 level as an opportunity to sell the first test.
Resistance - 1800-01**, 1810-12.50***, 1825***
Support - 1793.75-96***, 1784**, 1774.50-76*** 1766*, 1757***
(NYMEX:CLF14) - Look At Outside Markets For Direction, Dollar And Stocks: Crude oil has continued to climb slightly this morning, now reaching above the 20-day moving average which comes in at $94.16. Yes, today's 20-dma is a penny higher than that of yesterday. This can start to show signs of a short term bottoming and a failure to move lower in the short term. Crude oil is being pulled higher by the distillates and gasoline, which both show bullish technical setups as well as seasonal plays. Furthermore, Brent oil has stretched above $112, running stops above previous highs. Considering these factors, crude remains in consolidation and can test the higher part of its range, although still in a down market. The gap level from last Sunday's Iran agreement is at $94.70, this will be a major line in the sand and a close above here will confirm a consolidation higher. Only a close back below the 20-day moving average will keep a negative fail but truly a retest to $93 will keep the bears in control. Many traders and investors are expecting a consolidation in Crude as we head into many key global economic indicators later this week.
Resistance - 94.16**, 94.70**, 94.90*, 95.27*, 95.57-.63***, 96.69-96.92***
Support - 93.08-93.40**, 91.50-91.60*, 90.40***, 87.91**