Investor Risk Appetite Picks Up a Bit Friday

* LATEST MARKET DEVELOPMENTS *

In overnight news, China’s central bank allowed the Chinese currency, the yuan, to trade sharply higher against the U.S. dollar. The move by China was an effort to get more foreign capital flowing into China. The market place will closely scrutinize a fresh batch of Chinese economic data due for release over the weekend. It was also reported Friday that industrial production in the European Union grew 0.6% in August, which beat expectations of a 0.4% decline in August, from July. The mood of the European investor is a bit more upbeat Friday. U.S. economic data due for release Friday includes the producer price index, the University of Michigan consumer sentiment survey, and the monthly Treasury budget statement.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer early. The shorter-term moving averages (4-, 9- and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at Thursday’s high of 1,429.00 and then at 1,454.40. Buy stops likely reside just above those levels. Downside support for active traders today is located at Thursday’s low of 1,421.50 and then at 1,410.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices hit another fresh seven-week low overnight. The shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is located at 2,730.00 and then at Thursday’s high of 2,745.50. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,709.50 and then at 2,700.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

Dow futures: Sell stops likely reside just below technical support at Thursday’s low of 13,255 and then at 13,200. Buy stops likely reside just above technical resistance at 13,350 and then at Thursday’s high of 13,370. Shorter-term moving averages are bearish early today, as the 4-day moving average is below the 9-day and 18-day. The 9-day moving average is below the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Wyckoff’s Intra-Day Market Rating: 5.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are slightly weaker early today. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term resistance lies at Thursday’s high of 149 13/32 and then at 150 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 148 26/32 and then at 148 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

December U.S. T-Notes: Prices are slightly weaker early today. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at Thursday’s high of 133.12.5 and then at 133.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 133.00.0 last week’s low of 132.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

U.S. DOLLAR INDEX

The December U.S. dollar index is weaker again in early U.S. trading today. The greenback bears have the overall near-term technical advantage and are regaining some downside momentum late this week. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at the overnight high of 79.90 and then at this week’s high of 80.31. Shorter-term support is seen at 79.57 and then at this week’s low of 79.43. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Crude oil prices are slightly firmer early today. Bulls have the slight near-term technical advantage. In November Nymex crude, look for buy stops to reside just above resistance at $93.00 and then at this week’s high of $93.66. Look for sell stops just below technical support at the overnight low of $91.65 and then at $91.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Markets were lower in overnight trading, on a corrective, profit-taking pullback from Thursday’s solid gains. The USDA report Thursday morning was bullish for corn and soybeans, and wheat followed them higher. Thursday’s USDA report may have been a near-term “game-changer” for the grains. It’s now likely harvest lows are in place in the grains and that prices can work sideways to higher in to the end of the year. Grain traders are awaiting this morning’s weekly USDA export sales report.