Stocks look for drift higher after economic reports

(CME:ESH14) - Look For A Drift Higher Into The Close: The equity market has remained quiet as the S&P has remained in check just below our 1825 target and in a four point range this session. Durable Goods orders are expected to move the market, which is followed by New Home Sales; two vital pieces of data in short low volume trading session. Look for  the market to get above 1825 to encourage further buying. Supportive action is being seen on Friday's session highs at 1818 and against the lows of yesterday's session at 1816.75, use this level early and look to see anything but a big miss in data to stay supportive against this level. The 20-day moving average is rising and comes in today at 1793, any pull backs could be as deep as here and still remain bullish; adjust risk accordingly.

Resistance 1825**, 1833.50*, 1853***

Support - 1816.75*, 1812.50**, 1806.75**, 1802.50*, 1793***

(NYMEX:CLG14) - Trade It Early, But Don't Get Caught Holding A Short Into The Holiday: Crude oil has traded lower early in the session reaching $98.53, lower than Friday's session. The market has seen support off of this level to stretch back above $99 with a high of $99.21 early. Look for a close above yesterday's high of $99.31 to encourage more buying in a short session and the market closed for the Christmas Holiday tomorrow that could help reach the $100 level. The dollar has strengthened slightly but traders are looking to Durable Goods this morning for further indication. Like heading into the weekend, traders are weary of holing short positions in Oil, however a close above $99.49 will bring the next stop in Oil to $100. Major retracement levels above here at $100.82 will be the next major upside target. Still with the 50-day and 200-day moving averages below $97 there is a lot of support for this market to chew through to take the bulls out of control; most importantly the 20-dma at $97.06. Only a close below today's low and the 98.30 level will bring these into play.

Resistance - 99.31-99.49**, 100*,.100.82***, 102.52**

Pivot - 99.13-99.16

Support - 98.54-98-98.30**, 97.27*, 96.75***, 96.37***

About the Author
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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