S&P finds all-time high; crude tests new swing high

Short Programs Cover And Hedge funds Chasing Yield Buy; Market Poised To Test 1900 And Beyond

Equities continue to climb as the S&P 500 (CME:ESM14) has traded to a new all-time high reaching 1896.75 this morning. Deal activity and Chinese headlines helped Friday’s momentum carry over into this week. The next major upside target is our yearly upside target of 1917-1919. Data misses out of China last night has not derailed the rally as further news that AT&T is in talks to buy DirecTV for $50 billion has kept a further upbeat feel since the news broke late in the day yesterday. We anticipate Retail Sales today and Business Inventories ahead of PPI inflation data tomorrow. A continued close above the major 1893 level is needed to keep this immediate term bullish momentum intact. Only a close back below 1880.50-1883 will signal a short term failure and consolidation lower.

Resistance- 1893***, 1900*, 1917-1919****

Support –1880.50-1883**, 1874-75.50*, 1866-1867.75**, 1859-1861**, 1854.50**, 1847.25-48.50*, 1843-1844***

 

Crude

Risk On Supports Price; However Upside Capped By Large Reserve Of Oil, Play The Range

Crude Oil (NYMEX:CLM14) is testing new swing highs reaching 101.44 early this morning. Traders have taken softer than expected Industrial Production and Fixed Asset Investment data from China with a grain of salt. While the likes of Copper, a major commodity leader yesterday are slightly red, Oil still remains at the highest level seen since April 29.

The U.S. Dollar is back above major resistance at the 80 level this morning putting further pressure on the commodity sector; Crude would likely be testing the next major level above 102 if not for this currency action. Still Pro-Russian separatists in Eastern Ukraine have investors on edge and is the major driver holding Crude at these levels. A continued close above major resistance at 100.60-100.84 is needed to keep this uptrend intact. The next major upside target is 102.24-102.35 and only a close above here will signal a bullish leg higher.  

Resistance - 101.14-101.28**, 102.24-102.35**, 102.91**, 103.77-104.10**, 104.99-105.22**, 105.62**, 106.39**, 112.24****

Support –100.60-100.84***, 100.30**, 99.85*, 99.36**, 98.23*, 98.01-98.20***, 97.27**, 96.42-96.60***, 96.01**, 94.09**

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.

Follow Rich on Twitter: @iiTRADER

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