Market Overview

Buy the Dip and Sell the Rip Until Further Notice:

Buy the Dip and Sell the Rip Until Further Notice:

ESU3-Equities have climbed back from yesterday's lows allowing the bulls to be back in the driver’s seat as the S&P is making a run once again at 1700 this morning. The high this session so far is 1694 as the market has stalled out slightly against the 1695.50 resistance. The S&P must close above this resistance level to signal a bullish move higher. Still with resistance at previous highs at 1703-05 traders are eying the 1711 and then furthermore 1757 if the market can once again get back above 1700. Yesterday's early action found support at the 1676 level and avoiding a close below 1681 was tremendous for the bulls, still a close below here will be very bearish. With better than expected data out of Japan as well as German Sentiment data, traders are eying Retail Sales domestically to confirm this rally. A retest to support at 1685.50, a slight new low today will be a solid buying opportunity.

Resistance - 1695.50**, 1703-05*, 1711**, 1721*, 1757****

Support - 1685.50-86.75**, 1681***, 1676-77*, 1666***


CLU3-Crude Oil is showing solid strength this morning with price action above the 106.91 resistance reaching a high of 107.20. Yesterday's pull back to find support at 105 was an amazing buying opportunity for traders who continue to use that level. As the market recovered and was able close back above the 105.75-85 level, the sentiment was for higher price action. A slightly stronger dollar is keeping Crude in check against protests in Egypt which once again have traders buying Crude. Support will continue to come in at 105.75-95 and traders should use this as a buying opportunity today with a close above 106.91 as immediate term bullish. A close below this support will be discouraging but still only a close back below 104.79-105 will signal a failure. Bears can look to sell a new high against resistance at 107.52-88 but must define risk and if it is not working must just exit the trade.


Resistance -   106.91**, 107.52-88**, 108.82-93***, 110**, 113.14***
Support - 105.75-95**, 104.79-105***, 103.67-85**, 102.34*, 100.30-99.81***

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Futures Markets Trading Ideas


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