The STOCK INDEXES
The March NASDAQ 100 was higher overnight and is poised to extend the rally off Wednesday’s low. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March renews this year’s rally, monthly resistance crossing at 3668.00 is the next upside target. Closes below Wednesday’s low crossing at 3415.25 would confirm that a short-term top has been posted and would then open the door for additional weakness near-term. First resistance is last Monday’s high crossing at 3519.25. Second resistance is monthly resistance crossing at 3668.00. First support is Wednesday’s low crossing at 3415.25. Second support is the reaction low crossing at 3354.00.
The March S&P 500 was higher overnight and is poised to extend this year’s rally. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends this year’s rally into uncharted territory, upside targets will be hard to project. Closes below Monday’s low crossing at 1755.00 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 1806.30. Second resistance is unknown. First support is Monday’s low crossing at 1755.00. Second support is the reaction low crossing at 1738.70.
March T-bonds were slightly lower overnight while extending this month’s trading range. Stochastics and the RSI are neutral signaling that sideways trading is possible near-term. Closes above last Tuesday’s high crossing at 130-11 are needed to confirm that a short-term low has been posted. If March renews the decline off October’s high, weekly support crossing at 125-29 is the next downside target. First resistance is last Tuesday’s high crossing at 130-11. Second resistance is the reaction high crossing at 131-09. First support is December’s low crossing at 128-01. Second support is weekly support crossing at 125-29.
ENERGY MARKETS
February Nymex crude oil was lower overnight due to profit taking and is trading below the 38% retracement level of the August-November decline crossing at 99.15. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off November’s low, the 62% retracement level of the August-November decline crossing at 100.82 is the next upside target. Closes below the 20-day moving average crossing at 96.61 are needed to confirm that a short-term top has been posted. First resistance is Thursday’s high crossing at 99.49. Second resistance is the 62% retracement level of the August-November decline crossing at 100.82. First support is the 20-day moving average crossing at 96.61. Second support is November’s low crossing at 92.10.
CURRENCIES
The March Dollar was higher overnight as it extends the rally off Wednesday’s low. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends this week’s rally, December’s high crossing at 81.18 is the next upside target. Closes below the 10-day moving average crossing at 80.35 would confirm that a short-term top has been posted. First resistance is December’s high crossing at 81.18. Second resistance is the reaction high crossing at 81.50. First support is Wednesday’s low crossing at 79.50. Second support is October’s low crossing at 79.35.
GRAINS
March corn was lower overnight as it extends this month’s narrow trading range. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above last Tuesday’s high crossing at 4.40 3/4 are needed to renew the rally off this month’s low. Closes above the reaction high crossing at 4.49 1/2 are needed to confirm that a seasonal low has been posted. If March renews this year’s decline, weekly support crossing at 3.99 3/4 is the next downside target. First resistance is last Tuesday’s high crossing at 4.40 3/4. Second resistance is the reaction high crossing at 4.49 3/4. First support is this month’s low crossing at 4.18 1/2. Second support is weekly support crossing at 3.99 3/4.
March wheat was lower overnight as it extends the decline off October’s high. The low-range close sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off October’s high, weekly support crossing at 6.07 1/2 is the next downside target. Closes above the 20-day moving average crossing at 6.43 1/4 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 6.26 1/2. Second resistance is the 20-day moving average crossing at 6.43 1/4. First support is the overnight low crossing at 6.07 1/2. Second support is weekly support crossing at 6.07 1/2.
January soybeans were higher overnight as it consolidated some of Wednesday’s decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below the reaction low crossing at 13.12 1/4 would confirm that a short-term top has been posted. If January renews the rally off November’s low, the 75% retracement level of the August-November decline crossing at 13.66 3/4 is the next upside target. First resistance is last Tuesday’s high crossing at 13.53 1/2. Second resistance is the 75% retracement level of the August-November decline crossing at 13.66 3/4. First support is the reaction low crossing at 13.12 1/4. Second support is the reaction low crossing at 12.68 1/4.
