E-mini S&P (CME:ESM14)
Looking to sell into Rallies Early: Equities surprised investors late in the session as the S&P hit a low of 1844 just above major support and the 50% retracement level at 1843 before reversing and closing at 1866. The price action late in the day was surprisingly strong and has given the market a tremendous amount of bullish momentum this session investors look to the conclusion of the two-day FOMC meeting tomorrow.
Investors await earnings today from Twitter, Sprint, Boston Scientific as well as others.
Additionally, traders and investors alike await Consumer Confidence and Case Shiller Housing data. As the S&P has extended above the major 1866-67.75 level the next resistance is seen at 1874-75.50 while major resistance comes in at 1880.50-1883 and only a close above here will signal a bullish breakout. A close back below the 1866-67.75 level will begin to neutralize yesterday’s bullish reversal.
Resistance- 1874-75.50*, 1880.50-1883**, 1893***, 1917-1919****
Support –1866-1867.75**, 1863.75*, 1856.75**, 1847.25-48.50*, 1843-1844***, 1837.25**, 1830**, 1820.00-1823**, 1808.75***
Fundamentals Bearish; and Geo Risk And Equities Holding The Market Above $100.
Short Term I'm Selling Into Rallies Against $102.35 And Covering On A Failure. Crude Oil has traded off of yesterday’s swing lows after coming close to a major trend line that begins Jan. 13.
The market traded to 101.33 before closing at 100.84 and above the 200-day continuous moving average and major support at 100.60-100.76. The market has found momentum to push it back above the 101.14 level while a continuous close above here will signal a short term bottom. A move back above major resistance at 102.24-102.35 will signal a bull move and higher price action.
It will be important to watch the U.S. Dollar Index (NYBOT:DXM14) today while a weaker Dollar will continue to support commodity prices. Only a close back below yesterday’s 100.84 will signal a short term failure.
Resistance - 102.24-102.35**, 102.91**, 103.77-104.10**, 104.99-105.22**, 105.62**, 106.39**, 112.24****
Support - 101.14**, 100.60-100.84****, 100.25**, 99.36**, 98.23