* LATEST MARKET DEVELOPMENTS *

Asian and European stocks were higher overnight, with U.S. stock indexes also higher early Friday morning, amid an improved investor risk appetite to end the week. In the U.S., focus of traders and investors Friday morning was not on the markets but on an intense manhunt for one terrorist involved in the Boston Marathon bombing. A second terrorist suspect was killed overnight. There is a Group of 20 meeting in Washington, D.C. that began Thursday. The market place will pay close attention to any proclamations regarding foreign exchange rate, financial and/or economic policies coming out of the confab. There is no major U.S. economic data due for release Friday.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer early yesterday as trading has turned choppy this week. Bulls still have the overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early yesterday. The 4-day moving average is below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early yesterday. Yesterday, shorter-term technical resistance comes in at Thursday’s high of 1,553.20 and then at this week’s high of 1,570.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at this week’s low of 1,531.00 and then at 1,515.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are higher early yesterday as trading has turned choppy this week. Bulls still have the overall near-term technical advantage, but have faded. The shorter-term moving averages (4- 9-and 18-day) are neutral early yesterday. The 4-day moving average is below the 9-day and 18-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is located at 2,775.00 and then at Thursday’s high of 2,788.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,745.25 and then at this week’s low of 2,724.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5.

Dow futures: Prices are firmer early Thursday as trading has turned choppy this week. Bulls still have the overall near-term technical advantage but have faded a bit. Sell stops likely reside just below technical support at 14,450 and then at this week’s low of 14,400. Buy stops likely reside just above technical resistance at 14,500 and then at Thursday’s high of 14,560. Shorter-term moving averages are neutral early today, as the 4-day moving average is below 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 bearish early today. Wyckoff’s Intra-Day Market Rating: 5.5

U.S. TREASURY BONDS AND NOTES

June U.S. T-Bonds: Prices are lower early Thursday. Trading is choppy this week. Bulls still have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are still bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early yesterday. Shorter-term resistance lies at the overnight high of 148 14/32 and then at this week’s high of 148 20/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 147 28/32 and then at 147 13/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

June U.S. T-Notes: Prices are weaker early Thursday. Bulls still have the near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are still bullish early yesterday. The 4-day moving average is above 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 this week’s high of 133.09.0 and then at the April high of 133.11.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 132.25.5 and then at 132.20.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

U.S. DOLLAR INDEX

The U.S. dollar index is slightly lower in early U.S. trading. The index has turned choppy recently but the bulls on Wednesday did regain upside near-term technical momentum. Slow stochastics for the dollar index are bullish early Thursday. The dollar index finds shorter-term technical resistance at this week’s high of 82.815 and then at 83.000. Shorter-term support is seen at 82.460 and then at 82.250. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Crude oil prices are firmer early today on short covering after hitting a 9.5-month low of $85.61 on Thursday. Bears still have the near-term technical advantage. In May Nymex crude, look for buy stops to reside just above resistance at $89.00 and then at $90.00. Look for sell stops just below technical support at $87.50 and then at $87.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Markets were slightly lower overnight. Recent moisture in the U.S. Corn Belt and Plains states is deemed a bearish underlying factor for grains, even though it could turn to a bullish factor for corn, due to the specter of corn-planting delays now likely this spring. The corn-planting delay issue could become be a major market factor when trading gets under way next week. Grain traders will continue to look to the outside markets for direction, especially given the volatile trading seen in crude oil and gold recently.