(CME:ESH14) - Outside Bullish Formation Forms: Equities had a tremendous recovery off of the lows early in yesterday's session. In the December contract, the S&P found clear support against our 1757 level and the 50-day moving average leading to a test of the 20-day moving average at 1793. The March contract trades about 6 points lower than the December, putting the 20-dma yesterday at 1786.50 as the market consolidates ahead of the conclusion of the FOMC meeting tomorrow. Traders and investors alike should feel confident playing the levels and expecting a consolidation. The reality is that we are unlikely to see any big bets to make or break this market ahead of the Fed. The low early in the session is 1777.50, finding support above a consolidation zone through the end of last week.
Resistance - 1786.50**, 1793*, 1800**, 1805.75***
Support - 1767*, 1755.75**, 1747.50-1750***, 1729.50**, 1710***
(NYMEX:CLF14) - Trade The Range With A Bearish Bias: Crude oil has traded in a small range overnight after rallying nearly $1.50 off of the lows in yesterday's session. Again, traders need to use the three star support and resistance as major barriers in the market looking to sell or buy the first tests. Yesterday's session low at $96.21 found our first three star support at $96.15-$96.30 and provided a tremendous buying opportunity. The 50-day moving average comes in today at $96.93, supporting the low that has come in at $97.01. Look for a new low and close below the 50-dma to signal a retest to major support and yesterday's low at $96.21. A second test to this major level will have a higher percentage chance of breaking. The 20-day moving average comes in at $95.75. Traders must also watch a continued close above the $97.10-$97.25 level to help signal momentum. Resistance continues to come in at $97.72-$97.90, just above yesterday's high of $97.69. A consolidation higher would likely give enough momentum to test through yesterday's high. As traders anticipate inflation data, watch for a stronger dollar to put downward pressure on commodity prices.
Resistance - 97.72-97.90**, 98.92***, 99.86-99.94***
Pivot - 97.10-97.25
Support - 96.93**, 96.30-96.15***, 95.75**, 95.52-.63*, 95.26** 94.70-.43****