On the Levels With iiTRADER
Buy the Dips and Sell the Rips: Equities played the range perfectly yesterday, giving everyone who bought at the S&P 1681 level and opportunity to take profit against 1695.50 ahead of jobless claims. The market did settle back by mid day giving an opportunity for reentry before holding and rallying back to the intraday highs. This morning however, the equity market is soft once again and falling back towards 1681 support after seeing mixed data out of China. The low this session is 1686.25 and use a slight new low against this now built support level just above 1681 as a buying opportunity on the day. A close back below 1681 will bring great concern to the bulls as it will signal a further correction. The high this session is 1695.25 as the market remains in a range; longs can once again take profit against this level. However, a close above here will signal a further breakout.
Resistance - 1695.50**, 1703-05*, 1711**, 1721*, 1757****
Support - 1685.50*, 1681***, 1676-77*, 1666***
Remeber its Friday "Who wants to go home short": Crude Oil head faked all of the greedy shorts yesterday who did not get out upon new lows against the previous 102.67. After reaching above 108 and failing at 109, Crude has become a trading affair. Crude bounced off of a declining trend line yesterday when reaching 102.22 the lowest level since July 9 and right at our Support #2 on the day at 102.34. The market then recovered tremendously and has already retested at 105. Bulls found this as a value area, just as we have been saying that this market can remain bullish even into $99. The bulls did not let this market get to $99 as we head into the weekend, many shorts do not want to stay short so they covered and bulls found value below 103. Look for a close back above resistance at 104.79-105 as the bulls taking control and a likely continuation to the recovered up trend. Only a close back below 103.67-85 will show a failure, but until then use this level as a buying opportunity.
Resistance - 104.79-105***, 105.75-95**, 106.91, 107.52-88**, 108.82-93***
Support - 103.67-85**, 102.34*, 100.30-99.81***
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