* LATEST MARKET DEVELOPMENTS *
In overnight news, the Euro currency hit a fresh seven-month high and European stocks rallied in the wake of a big credit rating upgrade for Greece by Standard & Poor’s. There was also a positive German Ifo business confidence report for December released Wednesday. The apparent progress on the U.S. fiscal cliff talks has also been supportive to world stock markets recently. On the negative side, the Euro zone construction industry showed its sharpest decline in several months in October. Reports also said Spain’s prime minister will not request fresh European Union bailout funds at this time, but may in the future. U.S. economic reports due for release Wednesday include the weekly MBA mortgage applications survey, new residential construction, and the weekly DOE energy stocks report.–Jim
U.S. STOCK INDEXES
S&P 500 futures: Prices are firmer in early trading today and hit another fresh two-month high overnight. Bulls have upside momentum as a four-week-old uptrend is in place on the daily bar chart. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at 1,450.00 and then at 1,460.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,440.00 and then at 1,433.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5
Nasdaq index futures: Prices are firmer again early today and hit a fresh two-month high overnight. The shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is located at 2,725.00 and then at 2,740.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,700.50 and then at 2,680.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0
Dow futures: Prices are higher early today and hit a fresh two-month high overnight. Sell stops likely reside just below technical support at 13,250 and then at 13,200. Buy stops likely reside just above technical resistance at 13,350 and then at 13,400. Shorter-term moving averages are bullish early today, as the 4-day moving average is above the 9-day and 18-day. The 9-day moving average is above 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
March U.S. T-Bonds: Prices are firmer early today on short covering after hitting a two-month low Tuesday. Bears have fresh downside technical momentum. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below 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 146 18/32 and then 147 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at Tuesday’s low of 145 19/32 and then at 145 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0
March U.S. T-Notes: Prices are slightly higher early today on tepid short covering after hitting a six-week low on Tuesday. Bulls are fading badly. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below 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 132.04.5 and then at Tuesday’s high of 132.12.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at Tuesday’s low of 131.25.5 and then at 131.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0
U.S. DOLLAR INDEX
The March U.S. dollar index is lower in early U.S. trading today and hit a fresh three-month low overnight. Bears have gained good downside momentum recently. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at the overnight high of 79.39 and then at Tuesday’s high of 79.65. Shorter-term support is seen at the September low of 78.94 and then at 78.75. Wyckoff’s Intra Day Market Rating: 3.0
NYMEX CRUDE OIL
Crude oil prices are firmer early today. Bulls have gained some upside near-term technical momentum recently. In February Nymex crude, look for buy stops to reside just above resistance at $90.00 and then at the December high of $90.90. Look for sell stops just below technical support at the overnight low of $88.26 and then at $87.50. Wyckoff’s Intra-Day Market Rating: 5.5
GRAINS
Markets were mixed in overnight trading. Corn and soybeans were slightly lower and wheat was higher on some bargain hunting and fresh demand news. The grain market bulls have faded recently and bears still have some near-term technical momentum on their side.
