Wednesday an Extra Important Day in Market Place

* LATEST MARKET DEVELOPMENTS *

The New York exchanges are set to reopen today, which should make for a much more active trading day, especially as Wednesday is also the last trading day of the month. European stocks markets were mostly firmer overnight in quieter dealings, as the Europeans also await the opening of the New York markets. Asian stocks were also firmer, with Japan’s stock market rebounding from a sharp decline Tuesday, in the wake of the fresh Bank of Japan stimulus announcement. Focus of the market place now turns to the U.S. employment report due out Friday morning, and China manufacturing data due out Thursday. U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the employment cost index, and the ISM Chicago business survey. The weekly DOE energy stocks report, normally released on Wednesdays, has been delayed due to the storm.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer early today on some short covering and bargain hunting. The shorter-term moving averages (4-, 9- and 18-day) are still 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 bullish early today. Today, shorter-term technical resistance comes in at 1,425.00 and then at 1,433.10. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,408.00 and then at 1,400.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are firmer early today, on short covering and bargain hunting. The shorter-term moving averages (4- 9-and 18-day) are still 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 bullish early today. Shorter-term technical resistance is located at the overnight high of 2,676.75 and then at 2,700.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,650.50 and then at 2,626.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

Dow futures: Prices are firmer early today, on short covering and bargain hunting. Sell stops likely reside just below technical support at 13,054 and then at 13,000. Buy stops likely reside just above technical resistance at 13,150 and then at 13,200. 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: 5.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are weaker early today. Trading remains choppy. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at the overnight high of 148 19/32 and then at 149 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 148 even and then at 147 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are weaker early today. 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 neutral to bearish early today. Shorter-term resistance lies at the overnight high of 132.22.5 and then at 133.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.12.5 and then at 132.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

U.S. DOLLAR INDEX

The December U.S. dollar index is lower again in early U.S. trading today. Bears are regaining downside momentum this week. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at 80.00 and then at 80.25. Shorter-term support is seen at 79.50 and then at 79.25. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Crude oil prices are firmer early today and are still hovering not far above the four-month low scored on Monday. Bears still 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 $87.00 and then at $87.50. Look for sell stops just below technical support at the overnight low of $85.61 and then at $85.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Markets were firmer in overnight trading on some short covering and bargain hunting. The key outside markets are in a bullish posture for the grains again today, as the U.S. dollar index is lower and crude oil prices are firmer. Trading in the grains should be more active today, due to the reopening of the New York markets and today being the last trading day of the month.