Will Friday's payroll numbers stop the bleeding? Will crude stop following?

ESH4- Japan lead us up, Japan lead us down:

 

The stock market continued its worst start since 2009 as the S&P 500 reached a low of 1732.25. ISM Manufacturing showed the worst print in seven months becoming the catalyst for the worst trading day yet this year. The major focus this week is jobs data and now that the Fed has continued trimming bond purchases the only thing that can help stop the bleeding is a better than expected report Friday. Resistance will not come in at 1757-1761; only a close back above this level will encourage a consolidation into nonfarm payroll. There is a major trend line from July that comes in just below 1730 as support aligns with the Nov. 8 low of 1729.50. However, below this level, the next major downside support comes in at the 200-day moving average at 1694.25

 

Resistance - 1757***, 1761***, 1776.25-1775.75*, 1782.25-1780**, 1792-94.50**

Support -   1727-1730***, 1719.75**, 1707**, 1694.25***

 

CLH4-Oil settles into a range, waiting for the next catalyst:

 

Crude oil followed equities lower yesterday but found support against the 50- and 200-day moving averages with a low yesterday of $96.26 per barrel. Today the market is pressing this level as momentum is trying to point down after breaching a steep trend line in yesterday’s session. Still though, the 20-day moving average, a major momentum indicator comes in at $95.21 which aligns with previous lows and a major retracement level; only a close below this level will put the bears in control and signal a failure. Crude was able to close above the 200-day moving average in yesterday's session but look for a close below $96.44 today in order to see further selling pressure. Lastly, traders much watch the equity market and if traction is found, that will encourage Crude to consolidate higher.

 

Resistance -97.23**, 97.84**, 98.40-98.54***, 100.79*** Pivot - 96.44 Support - 96.21**, 95.21-94.90****, 94.19**

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.

Rich is featured expert/trader and contributor on CNBC's "Futures Now" Show, and has been quoted in multiple of top-tier publications, including: The Wall Street Journal, Associated Press, Bloomberg News and Reuters.

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