ESU3 Good News is Bad News-Better Than Expected Housing Data Boosts Yields and Dollar Pressing S&P Lower as Investors Wonder About QE

Equities are heavy this morning after the S&P reached below our major support at 1680.25 yesterday but was able to hug the level and close above there after reaching a low of 1677.25. As traders once eyed the 1700 level to be achieved on the week, the S&P is now more than 25 points from there. Traders and investors alike are watching and trading economic data on a daily basis and even after solid earnings out of many top companies in the last 24 hours, good news has become bad news after Housing data strongly beat expectations. We further await Durable Goods data and as we have said the "good news is bad news" or vice versa should not provide the same result two days in a row we expect a solid beat to lift the market. Bears can look to sell against 1681-82 but a close back above here will show signs of stabilization. The next major level below the market is 1666.75 and bulls should look to buy against here or just above, but a close below this level will show signs of failure.

Resistance - 1681***, 1686-87* 1694-95*, 1700*, 1711*, 1757***

Support - 1666.75***, 1648-51**, 1642*