Equities have continued to hold against the highs as the S&P (CME:ESM14) consolidates into this week’s major data points. Yesterday’s ISM Manufacturing data has left traders confused as it was “edited” shortly after the announcement to show a small miss. We have a large lineup of small data points this morning being led by Factory Orders ahead of ADP and ISM Non-Manufacturing tomorrow.
There is a shelf that comes in at the 1914 level while yesterday’s low reached 1913.75; a close below here will signal a consolidation leading into tomorrow morning. Light resistance remains at 1924 and a continued close above the 1917-1919 area will encourage further buying as momentum is clearly up. Still we are looking for the market to remain in check until we have a catalyst to initiate higher price action; ECB stimulus or Nonfarm beat.
Resistance- 1924*, 1938**
Pivot - 1917-1919
Support – 1913-1914*, 1904.75-1906**, 1898.50-1900*, 1893**, 1880.50-1883***, 1874-75.50*, 1866-1867.75**
The energy complex has continued to soften as it reached a low of 102.10 yesterday before finishing the electronic session just below support at 102.45. Look for this level to keep the market in check early but if it continues to hang, this will show a fear of selling ahead of API inventory data tonight and EIA tomorrow. The sideways trade right now is waiting for a catalyst this morning ahead of economic indicators, look for a new low to hold 101.71 ahead of EIA data.
The dollar (NYBOT:DXM14) has continued to consolidate as well holding the 200 dma at 80.70, only a close above here will cause a short cover likely putting further pressure on the energy complex. A close back above 102.49-102.61 will signal a consolidation towards 103.11 ahead of tomorrow’s EIA.
Resistance –103.11*, 103.65-103.85**, 104.29**, 104.77*, 104.99-105.22***, 107.33***
Support –102.49-102.61**, 101.71**, 100.82***, 100.27**