Equities (CME:SPU14) began the week just as they finished last—on a positive note. German sentiment this morning missed expectations and has provided a soft trade in European stocks. Earnings will begin to take center stage as JP Morgan left investors disappointed (though beating profit estimates) while Goldman Sachs was able to show a positive report.
Still, Janet Yellen and the Fed will be on everyone’s minds as she testifies in front of Congress, plus we have Retail Sales and NY Empire State Manufacturing. Data outside of Nonfarm Payroll has left a lot to be desired and we must begin the week on a positive note in order for this market to hold against the highs. The market has hugged the 1971.75 level while finding support above the 1965.50 level to begin the week.
Slight new lows on the day should bring a nice quick buying opportunity against 1965.50 on the first test; a close below here though will encourage a consolidation lower that could reach as low as 1952.50-1954. Major resistance remains at previous highs and only a close above 1976-1977.50 will signal a new bullish leg.
Resistance- 1976-1977.50**, 1983.75**, 1998.25****-2000
Pivot - 1971.75
Support – 1965.50**, 1959.75*, 1952.50-1954***, 1947.25**, 1936.50-1938***, 1933.75*, 1929.75-1931**, 1924*, 1917-1919***