(CME:ESH14) - Up On Data Overnight: Equities have shown signs of stabilizing this morning after seeing better than expected employment data out of Germany. Also, this comes ahead of ADP data tomorrow and after the S&P dipped to a new swing low of 1817.25 in yesterday's session. The market has found itself back at the 1825-27 pocket and a close above here will encourage a grind higher with resistance coming in against previous lows at 1832.50. This level kept the market in check yesterday with a high of 1832.50. The 20-day moving average has continued to grind higher and comes in at 1809.25; this will be a major line in the sand for momentum. Dips to this level need to be bought on the week until we see a close below here and the psychological 1800 level. A close back above last Thursday's high of 1840.75 will encourage further buying and a possible melt up to our next major upside target of 1853. Lastly, Alcoa kicks off earnings season Jan 9.
Resistance - 1832.50**, 1840.75*, 1846.50*, 1853***, 1893***
Pivot - 1825-27
Support - 1817-1819**, 1809.25***, 1800*, 1787.25***
(NYMEX:CLG14) - Market Reaching Oversold Conditions As It Drops $7 Dollars in Five Sessions; Looking For A Bounce: Crude oil is showing signs of consolidating this morning after dipping to new lows yesterday after reaching $93.20. The higher low at $93.54 this morning and a trade back above $94 shows that light buying is coming into the market against oversold territory. With API and EIA data back to their regularly scheduled times and ADP data tomorrow, we are seeing some profit taking as shorts buy to close positions on what has become a $7.50 sell off in a week. The death cross with the 50- and 200-day moving averages provides a major line in the sand for any recoveries at $96.29 and $96.62 respectively. Furthermore, the 38.2% and 50% retracement from this recent drop come in at $96.08 and $96.98 to provide further resistance at this level. Resistance will come in today against yesterday's early high of $94.59 and a close above here could encourage further short covering into tomorrow's data.
Resistance - 94.59*, 95.13*, 95.90**, 96.08*, 96.29***, 96.62***, 96.98**, 97.89**
Support - 93.20-93.46***, 92.10**