(CME:ESH14) - Largest volume day in two-months at NYSE pushes market to highs: Equities have retreated slightly from their two-day rally. The S&P reached a high of 1845.75 yesterday, the highest of the year, but failed to put in new all-time highs against 1846.50, which was seen on Dec. 31. There is a lot of data to focus on today that includes jobless claims and inflation numbers from December. Also, Bernanke is scheduled to speak and Goldman Sachs and Citigroup are scheduled to release earnings today, following JPMorgan and Bank of America, who both showed strong numbers yesterday. Support will come in at 1832.50, a close below here will be discouraging to the bull camp; however, only a close below 1825-1827 will signal a failure and further correction. Resistance on a closing basis remains at 1840.75-1842.40 as yesterday boasted the highest close at 1841.50; a close above here will likely bring our next upside target of 1853 in within the next session.
Resistance - 1840.75-1842.50***, 1853***, 1893***
Support - 1832.50**, 1825-27***, 1815.75**, 1809.50**, 1800**, 1793.50**
(NYMEX:CLG14) - Every rally starts with a short cover: Crude oil has traded more than $3 off of the lows as today's session high of $94.64 matches that of yesterday in the February contract. Today is the last day traders will be looking to use the February contract as options expired yesterday. EIA data had a major hand in the rally as inventories showed a drawdown of 7.658 million barrels, much more than the less than 1 million drawdown expected. Price action was already seeing a short covering after a failed move lower ahead of option expiration. Resistance at $93.20-$93.46 held well early was violated just ahead of inventories. Support will now come in at $93.20 on pullbacks; a close back below here will signal a failure. Light resistance at $94.59 has held; however, that level is aligned with a retracement point at $94.87; a close above here will likely bring a test to the 50-day moving average at $95.71, which has ticked up today. At a minimum, the last three occasions we have seen the closest major moving average (50-dma or 100-dma) tick up for the first time, we have seen a follow through to the upside from the day before. The major line in the sand to the upside remains the 200-day moving average which comes in at $96.57 and is where the 50-day crossed below it to create the death cross.
Resistance - 94.59-91.87**, 95.13*, 95.71***, 95.92-95.99**, 96.57***
Support -93.20**, 92.33-92.38**, 91.50*, 91.24**, 90.05***