E-Mini S&P 500 (CME:ESM14)
Betting on Profit Taking And Settling Of Positions Before Tomorrows Jobs Numbers
The equity market reached new highs again in yesterday’s session as the S&P 500 traded to a high of 1886.25 which was matched early in today’s session. The market closed at its highest level in yesterday’s session at 1883 as we are seeing bullish momentum heading into the all-important Nonfarm Payroll number Friday. Look for major support to come in at the 1866-67.75 level and only a close below here will signal a consolidation lower. Our major upside targets remain 1893 and then 1917-1919 and only a close above these levels will signal a test to 2000 in what could be a melt up affect as investors do not want to miss the next leg higher. Traders and investors alike will focus on Initial Jobless Claims as well as ISM Non-Manufacturing today, remember good news should be treated as bullish and a miss should encourage a lower trader now that Yellen has laid out a game plan. Look for a continued close above previous highs at 1880.50 to signal an immediate bullish trend.
Resistance - 1893***, 1900*, 1917-1919
Pivot - 1880.50
Support – 1874.75-1876.75*, 1866-1867.75***, 1861*, 1856-58.75**, 1850.75-51.25*, 1846.50-1848**, 1840.50*, 1834.50**
Crude oil (NYMEX:CLK14)
Reaching "Oversold Conditions" Looking For a Bounce; However Bears Still in Control
Crude oil continued to correct early in yesterday’s session reaching a low of 98.86 before closing at 99.27. It is no surprise that this low aligned with our major three star support at 98.99-99.22, although this was a small range but the market proved to hold as it is back above the 99.47 pivot this morning allowing even those who bought in front of the major three star support at 99.25 to exit the trade profitably. More specifically, we have a recently created major retracement level that comes in at 99.00 which has now provided further support. Only a close below this level will signal another leg down that should test the next three star support at 97.00-97.28 (previous lows come in at 97.00 and the 200 day and 100 day moving averages at 97.01 and 97.28 respectively).
However, not before allowing what should be a quick buy the first test trade against two star support at 97.92-98.04. This is what the levels are for and how they are meant to be used, remember to always manage risk properly. Furthermore, the market moved lower early, but a drawdown in crude inventories of 2.379 when a build was expected was able to stop the bleeding and ultimately bring a consolidation higher. The 50 day moving average comes in at 99.30, look for the market to maintain a close above here to remain in consolidation mode. Only a close back above major three star resistance at 100.43-100.65 will signal an immediate bullish uptrend; until then continue to trade the levels.
Resistance –100*, 100.43-100.65***, 101.18*, 101.60**, 102.25**, 104.48***
Support – 99.30**, 98.86***, 98.59*, 97.92-98.04**, 97.00-97.28***