Bears Are Waving The White Flag....Almost
ESZ3-Bear's are almost waving the white flag (today's close key), The market is zeroing in on our first quarter call of 1757: Equities are trading in full blown rally mode as the S&P reaches a new all-time high at 1733.50. Traders awaited GDP from China that confirmed the median analyst’s estimates of 7.8%. By early this week it was obvious that investors were expecting a deal in Washington and now that they do not expect the Fed to taper its bond purchasing until well into next year the market has steamrolled through resistance levels on its way to our yearend 1757 target. Look for a close above previous highs at 1726.75 to keep momentum intact. Only a close back below support and previous September closing values at 1717.75-18.25 will signal a short term failure. Look for any light pull backs as buying opportunities to close out the week against 1723-1726. The next light resistance sits at 1739. We could see profit taking ahead of Septembers Non-farm Payroll data on Tuesday.
Resistance - 1739**, 1750*, 1757****
Support -1723-26**, 1717.75-1718.25*, 1709.75-10.50**, 1698.50**, 1684-87***
CLX3-Bears cant seem get momentum to crush the $100 price: Crude Oil has continued to find support at the $100 level. Yesterday reached a new swing low of 100.03 as the market finds itself back above the 101.05 level on the highs of the session. Chinese growth was inline and had a hand in Crude finding support at the psychological $100 level. A weaker dollar has continued to keep Crude Oil in check as a lack of data has also kept this market in a tighter range. Only a Dollar Index back above 80 will really put pressure on commodities and particularly Crude. Yesterday's high of 102.32 found major resistance and only a retest to this level and close above here will signal a rally/consolidation that could stretch as high as 103.74-103.93. With yesterday's marked close at 100.67 look for a continued close below 101.05-101.16 to keep the bears clearly in control.
Resistance - 101.05-101.16**, 101.50-.64*, 102.20-102.37***, 102.65*, 103.07*, 103.74-103.93***, 104.54-104.40**
Support - 100.58**, 100-99.78***, 98.00-96.00
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