Fed non-event pushes markets to test resistance

(CME:ESH14) - Looking To Sell A Rally Against 1792: After trading to a session opening high of 1801, the S&P then traded nearly 40 points from its spike open reaching a low of 1764 shortly after the Fed announced that it will trim bond purchases another $10 billion. The market has continued to consolidate higher this morning as it searches to test resistance at 1780-82.25. Yesterday's close was 1771.25, the market must hold this level and truly close above the pivot at 1775.75-1776.25 to keep sentiment positive. Although yesterday's FOMC was a non-event because it was more priced in than not, it allows today to be an even bigger day, and only about the data. After German Unemployment came out better than expected, traders then had US GDP, Initial Jobless Claims and Pending Home Sales to look to, not to mention much anticipated inflation data later tonight out of Japan. A close above the 1782 area will encourage further buying and a possible bottom.

Resistance - 1782.25-1780**, 1792-94.50**, 1801*, 1805.75***

Pivot -  1776.25-1775.75

Support -   1764-67*, 1758.50***, 1730**

(NYMEX:CLH14) - Refined Products Continue To Drive Prices Higher: Crude Oil is trading higher this morning after the Fed gave the economy a vote of confidence. Although Crude inventories showed a build of 6.4 million barrels, more than twice the expected, Distillates were the more anticipated report showing a draw of 4.58 million barrels, more than twice the expected. Furthermore, as artic temperatures persist through most of the United States, demand has had an uptick. Not to mention, natural gas prices were up more than 10% in yesterday's session. Crude has taken out previous highs at $97.84 initially trading to $97.97; a close above previous highs could encourage a further break out to test $100. Only a close back below the 100-day moving average at $97.35 will keep the bulls out of control.

Resistance -97.84***, 98.40**, 100.79***

Support - 97.35**, 96.27***, 96.09**, 95.16*, 94.90***

About the Author

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.