Sunday nights open was deja vu. Very similar to last week, we saw a strong open, particularly in the S&P which has now turned into a red day. The .618 retracement from 1405 highs to 1255.5 lows is 1348. The high came in at 1347.50, right against the 100dma 1348.25. There is obviously a lot of resistance at that area. Friday’s high was right at the 50dma 1338, and after a strong open, I believe the market needs to close above there in order to maintain momentum in the direct future before the FOMC. Support should be found at a volume pocket and 50% retracement at 1324-1322.50, I will look to buy the first test down there. Next support comes in at the more recent .618 at 1316.25. Gold however, has been somewhat quiet sitting right in its range as traders partially seem uncertain and partially confused on where this market belongs in the intermediate term. With the FOMC Tuesday and Wednesday everyone will be eyeing the verbiage used out of the Fed. Day traders should continue to play the ranges with a respective bias. A close above the 1630 level is very bullish and the only signal that seems to be on the board right now as we await mid-week. Opportunities to buy at 1610, if available are very attractive.
Resistance - 1624-27***, 1630.5*, 1642, 1664 (100dma), 1684 (200dma)
Support –1618, 1609-11, 1601-02**, 1595, 1586**, 1582*, 1556
Resistance – 1338*, 1348.25***(100dma), 1365
Support – 1324-1322.50**, 1316.25**, 1304, 1297***