* LATEST MARKET DEVELOPMENTS *

The main news event in the market place to start the new trading week is Hurricane Sandy that is poised to lash the U.S. eastern coast. The New York Stock Exchange and New York futures exchanges are closed, although there is still electronic trading of New York markets Monday. Still, with New York City virtually shut down, trading activity will be lighter early this week. Traders are awaiting Friday’s U.S.
employment report. In overnight trading, European stocks were lower. Attention in Europe is on Greece presently, as European Union officials debate releasing another tranche of EU bailout money to that financially troubled country–despite Greece not meeting its austerity targets. The closely monitored Spanish and Italian bond yields crept higher Monday, which is a sign if increasing investor anxiety regarding the EU sovereign debt crisis. Asian stocks were mixed, with Asian traders awaiting the Bank of Japan meeting on Tuesday, which is expected to see the BOJ announce further monetary stimulus measures for the Japanese economy. U.S. economic data due for release Monday includes the Chicago Fed Midwest manufacturing survey, personal income and outlays, and the Texas manufacturing outlook survey.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are weaker early today, Prices Friday hit a 10-week low. 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 bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 1,406.70 and then at 1,416.70. Buy stops likely reside just above those levels. Downside support for active traders today is located at Friday’s low of 1,394.70 and then at 1,380.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 4.0

Nasdaq index futures: Prices are lower and hit a 2.5-month low on Friday. 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 the overnight high of 2,658.50 and then at 2,673.50. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 2,625.00 and then at Friday’s low of 2,604.50. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

Dow futures: Prices hit a 10-week low Friday as bulls are fading. Sell stops likely reside just below technical support at 12,900 and then at 12,850. Buy stops likely reside just above technical resistance at 13,000 and then at 13,050. Shorter-term moving averages are bearish early today, as the 4-day moving average is below the 9-day. The 9-day moving average is below the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral early today. Wyckoff’s Intra-Day Market Rating: 4.0

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are higher early today, on short covering and some fresh safe-haven demand. Trading has been choppy recently. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at 149 even and then at 149 16/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 148 2/32 and then at 147 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

December U.S. T-Notes: Prices are higher early today on more short covering and safe-haven buying. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at 133.00.0 and then at 133.08.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.17.5 and then at 132.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

U.S. DOLLAR INDEX

The December U.S. dollar index is firmer in early U.S. trading today. Prices Friday hit a six-week high and closed at a bullish weekly high close. While bears still have the overall near-term technical advantage, the bulls are gaining upside momentum. Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at Friday’s high of 80.37 and then at 80.57. Shorter-term support is seen at the overnight low of 80.07 and then at 79.77. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Crude oil prices are lower early today and are hovering near a 13-week low hit last week. Bears have the overall near-term technical advantage as a downtrend on the daily bar chart has been re-established. In December Nymex crude, look for buy stops to reside just above resistance at the overnight high of $86.43 and then at $87.00. Look for sell stops just below technical support at last week’s low of $84.94 and then at $84.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

Markets were mixed in overnight trading. Corn and wheat were higher and soybeans were lower. The key outside markets are in a bearish posture for the grains early today, as the U.S. dollar index is firmer and crude oil prices are lower. Focus of grain traders is on the worldwide grain demand prospects, amid higher price levels.