* LATEST MARKET DEVELOPMENTS *

It’s a “risk-off” day in the market place early Tuesday. Some disappointing U.S. corporate earnings reports, DuPont being the latest, have hit the U.S. stock market. European stocks were pressured on fresh worries about Spain’s economic health. Spanish bond yields rose Tuesday on reports Spain’s central bank said the Spanish economy contracted by 1.7% in the third quarter, on an annual basis, versus the 1.3% contraction in the second quarter. The central bank also said Spain may not be able to meet its deficit targets. Also, Moody’s has further downgraded sectors of the Spanish economy. Arguably the most important economic event of the week is the meeting of the Federal Reserve’s Federal Open
Market Committee, which begins Tuesday morning and ends early Wednesday afternoon. The FOMC is expected to make no major monetary policy shifts, but the market place will be very closely scrutinizing wording from the FOMC statement issued following the meeting. U.S. economic data due for release Tuesday includes the Goldman Sachs and Johnson Redbook weekly retail sales reports, the Richmond Fed business survey, and the FOMC meeting begins.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are weaker early today, hit a fresh six-week low and are scoring a bearish “outside day” down on the daily bar chart. 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 bearish early today. Today, shorter-term technical resistance comes in at 1,425.00 and then at the overnight high of 1,433.10. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,411.50 and then at 1,400.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 4.0

Nasdaq index futures: Prices are lower and hovering near a 2.5-month low early today. 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 bearish early today. Shorter-term technical resistance is located at 2,675.00 and then at the overnight high of 2,695.25. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 2,650.00 and then at 2,625.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

Dow futures: Prices hit a fresh six-week low overnight as bulls are fading. Sell stops likely reside just below technical support at 13,150 and then at 13,100. Buy stops likely reside just above technical resistance at 13,200 and then at 13,250. Shorter-term moving averages are neutral early today, as the 4-day moving average is above 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 some fresh safe-haven demand. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at the overnight high of 147 22/32 and then at 148 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at 147 even and then at the overnight low of 146 22/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

December U.S. T-Notes: Prices are firmer early today. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at Monday’s high of 132.13.5 and then at 132.20.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at last week’s low of 131.29.0 and then at 131.23.0. 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. While bears still have the overall near-term technical advantage, the bulls are gaining a bit of upside momentum. Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at last week’s high of 80.04 and then at the October high of 80.31. Shorter-term support is seen at the overnight low of 79.62 and then at 79.50. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Crude oil prices are lower early today and hit a fresh 13-week low overnight. Bears have now regained overall near-term technical advantage. In December Nymex crude, look for buy stops to reside just above resistance at the overnight high of $89.29 and then at $90.00. Look for sell stops just below technical support at the overnight low of $87.27 and then at $87.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

Markets were lower in overnight trading, on some profit taking and chart consolidation from recent gains. 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. Grain markets have made some upside headway recently, to provide the bulls with some fresh technical momentum.