Equities rise in anticipation of FOMC

ESU4- Look For An Extended Range Early- Trade It- I'm Looking To Fade A Rally Up To 1983.75, Get Flat By The End Of The Day:

Equities have ticked up this morning with the S&P testing major resistance at 1976-1978.25. Investors continue to focus on the conclusion of a two-day FOMC meeting tomorrow which will be accompanied by GDP and ADP earlier on. The Fed is expected to keep status quo as they are expected to finish the taper in October. There is no reason to speed anything up at this point or give any indication of doing so as fear of a growth slowdown due to new sanctions on Russia has already affected Europe. The week concludes with July’s non-farm payroll report and an upbeat release will encourage a test to 2000 in the S&P. Still, today we have consumer confidence, Case Schiller Housing data and earnings from Twitter, UPS and Pfizer. A close back below support at 1971.75 will be a disappointment for the bull camp but yesterday’s recovery off of a swing low that reached support at 1959.75 by trading to a low of 1960.75 was a victory in its own. A close below 1965.50 though will leave a heavy tape.    

Resistance- 1976-1978.25**, 1983.75**, 1998.25****-2000

Pivot -

Support –1971.75*, 1965.50**, 1959.75**, 1952.50-1954***

CLU4- Look For The Market To Break Yesterday's Low Early: 

Crude oil recovered off of a test to major three-star support at 100.84 yesterday that hit a low of 100.90. The market recovered off of this level as shorts covered and fresh buying came in as geopolitical fears remain on the forefront. With new European sanctions being imposed on Russia as early as today, a slowdown in growth becomes further relevant. Still, the major issue is the geopolitical tension itself, however after the weekend we have seen some of the premium fall out of the market. Focus will now shift to consumer confidence, GDP and jobs data this week. The Fed is expected to keep a status quo though raising rates as early as March of next year is expected to eventually hamper demand. API inventories are released later today and EIA tomorrow as inventories in Cushing, Okla., will continue to be a major focus point as they were at the lowest since 2008 last week. The 101.34 level will be pivotal on the close and a move below here will leave a heavy tape. Resistance will come in at 102.33 and new highs on the day will likely stay in check against this level.

Resistance –102.33*, 102.90-102.99**, 103.58***, 104.31**, 104.75*, 105.40**, 106.64**

Pivot - 101.34

Support –100.84***, 100.34**, 100.00**, 96.82****

ESU4- Look For An Extended Range Early- Trade It- I'm Looking To Fade A Rally Up To 1983.75, Get Flat By The End Of The Day: Equities have ticked up this morning with the S&P testing major resistance at 1976-1978.25. Investors continue to focus on the conclusion of a two day FOMC meeting tomorrow

 

which will be accompanied by GDP and ADP earlier on. The Fed is expected to keep status quo as they are expected to finish the taper in October. There is no reason to speed anything up at this point or give any indication of doing so as fear of a growth slowdown due to new sanctions on Russia has already affected Europe. The week concludes with July’s Non-farm Payroll Report and an upbeat release will encourage a test to 2000 in the S&P. Still today we have Consumer Confidence, Case Schiller Housing data and earnings from Twitter, UPS and Pfizer. A close back below support at 1971.75 will be a disappointment for the bull camp but yesterday’s recovery off of a swing low that reached support at 1959.75 by trading to a low of 1960.75 was a victory in its own. A close below 1965.50 though will leave a heavy tape.    

 

 

Resistance- 1976-1978.25**, 1983.75**, 1998.25****-2000

Pivot -

Support –1971.75*, 1965.50**, 1959.75**, 1952.50-1954***

 

 

CLU4- Look For The Market To Break Yesterday's Low Early: 

Crude Oil recovered off of a test to major three star support at 100.84 yesterday that hit a low of 100.90. The market recovered off of this level as shorts covered and fresh buying came in as geopolitical fears remain on the forefront.  With new European sanctions being imposed on Russia as early as today a slowdown in growth becomes further relevant. Still the major issue is the geopolitical tension itself, however after the weekend we have seen some of the premium fall out of the market. Focus will now shift to Consumer Confidence, GDP and jobs data this week. The Fed is expected to keep a status quo though raising rates as early as March of next year is expected to eventually hamper demand. API inventories are released later today and EIA tomorrow as inventories in Cushing, Ok will continue to be a major focus point as they were at the lowest since 2008 last week. The 101.34 level will be pivotal on the close and a move below here will leave a heavy tape. Resistance will come in at 102.33 and new highs on the day will likely stay in check against this level.

 

 

Resistance –102.33*, 102.90-102.99**, 103.58***, 104.31**, 104.75*, 105.40**, 106.64**

Pivot - 101.34

Support –100.84***, 100.34**, 100.00**, 96.82****

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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