(CME:ESH14) - CME S&P Options Hit New Volume Record As Hedge Funds Shore Up Positions; Two Most Active Strikes FEB 1750 Puts And The FEB 1850 Calls: The S&P stabilized well by midday yesterday after putting in new lows reaching 1767. The FOMC begins its two day meeting today and many feel that the market has gone through a self-correction and that Bernanke and the Fed will remain on pace tapering another $10 billion as was begun in December. Still, traders will be closely watching Durable Goods and housing data this morning. With much of the data mixed to poor this month, traders need to see more consistency in order to press this market back above 1800 this week. The market sold off into the close yesterday getting a marked close at 1775.75, support at 1776.25 will play a key role as traders look for a higher close. Resistance comes in against yesterday's highs and 1794.50, a close above here will encourage further buying that could reach as high as 1806.25.
Resistance - 1792-94.50**, 1800*, 1806.25***, 1813.75**,
Pivot - 1782.25-1780
Support - 1776.25**, 1767*, 1757-55.75***
(NYMEX:CLH14) - Keep An Eye On Currencies For Direction: Crude oil sold off early in yesterday's session as the market picked up momentum below the 200-day moving average at $96.15, but comes in today at $96.17. This level will be closely watched as a close below here is needed to keep the bulls from holding control. Also, the 50-day moving average is at $95.96 as the market has spent a lot of this morning between these two levels. The dollar is slightly strong this morning as traders prepare for the two-day FOMC meeting that begins this morning. Crude has been able to rally with higher demand although we have seen mixed economic data. Durable Goods today should be a major market mover. The low in today's session is $96.65, support below here comes in at $94.90, a close below this level will signal a failure.
Resistance -96.15-96.20***, 97.25*, 97.84***, 98.40**, 100.79***
Support - 95.96**, 95.16*, 94.90***