OVERNIGHT/EARLY MORNING DEVELOPMENTS

The feature in overnight/early morning trading is sharply lower gold prices, amid the steep slide in crude oil prices. Crude oil is lower, too, while stock indexes are also lower and Treasuries are steady. The U.S. dollar is also weaker early today.

BlogChart.gif

U.S. ECONOMIC REPORTS/EVENTS

On tap for today is Boston Fed president Minehan speaking, manufacturers profits, Fed governor Kohn speaks, and St. Louis Fed president Poole speaks.

U.S. STOCK INDEXES

The stock indexes are weaker in early morning electronic trading. Bulls are fading as the historically unfriendly month of September moves ahead.

December S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are turning bearish today. The 4-day moving average is below the 9-day and 18-day moving average. The 9-day is still above the 18-day moving average, but is turning down. Short-term oscillators (RSI, slow stochastics) are bearish for today. Today, shorter-term technical support comes in at the overnight low of 1,303.00. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at 1,300.00. Upside resistance for active traders today is located at Friday’s high of 1,311.00. Buy stops are likely located just above that price level, and then more buy stops are likely located just above chart resistance at this week’s high of 1,318.40. Wyckoff’s Intra-day Market Rating: 4.0

PIVOT POINT LEVELS FOR DECEMBER S&P 500:

Pivot:———— 1,309.70
1st Support:—— 1,307.10
2nd Support:—— 1,303.70
1st Resistance:— 1,313.10
2nd Resistance:— 1,315.70

December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are turning bearish today. The 4-day moving average is below the 9-day today and 18-day moving average. The 9-day moving average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical support is located at 705.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 700.00. On the upside, short-term resistance is seen at 715.00. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at this week’s high of 720.00. Wyckoff’s Intra-Day Market Rating: 4.0

PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:

Pivot:———— 714.00
1st Support:—— 712.25
2nd Support:—— 709.75
1st Resistance:— 716.50
2nd Resistance:— 718.25

December Dow: For today, sell stops likely reside just below support at Friday’s low of 11,432 and then more stops just below support at last week’s low of 11,410. Buy stops likely reside just above shorter-term technical resistance at Friday’s high of 11,490 and then more buy stops just above resistance at 11,500. Shorter-term moving averages are turning bearish today, as the 4-day moving average is turning down. The 9-day moving average is still above the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral for today. Wyckoff’s Intra-Day Market Rating: 6.0

PIVOT POINT LEVELS FOR DECEMBER DOW:

Pivot:———— 11,464
1st Support:—— 11,439
2nd Support:—— 11,406
1st Resistance:— 11,497
2nd Resistance:— 11,522

U.S. TREASURY BONDS AND NOTES

Prices are steady in early trading in Chicago. The bulls are fading a just bit and need to show some fresh power soon.

December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are turning bearish today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral for today. Shorter-term technical resistance lies at Friday’s high of 110 26/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at 111 even. Shorter-term technical support lies at Friday’s low of 110 9/32. Sell stops likely reside just below that level. More sell stops are likely located below support at last week’s low of 109 29/32. Wyckoff’s Intra-Day Market Rating: 5.0

PIVOT POINT LEVELS FOR DECEMBER T-BONDS:

Pivot:———– 110 18/32
1st Support:—– 110 10/32
2nd Support:—– 110 1/32
1st Resistance:– 110 27/32
2nd Resistance:– 111 3/32

December U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are neutral to bullish for today. Buy stops likely reside just above shorter-term technical resistance at Friday’s high of 107.09.5, and more buy stops are likely located just above resistance at the September high of 107.14.5. Shorter-term moving averages are neutral today. The 4-day moving average is below the 9-day, but is turning up. The 9-day is above the 18-day moving average. Sell stop orders are likely located just below support at Friday’s low of 106.31.0, and then more sell stops just below support at last week’s low of 106.24.0. Wyckoff’s Intra Day Market Rating: 5.0

PIVOT POINT LEVELS FOR DECEMBER T-NOTES:

Pivot:———— 107.05.0
1st Support:—— 107.00.0
2nd Support:—— 106.26.0
1st Resistance:— 107.11.0
2nd Resistance:— 107.16.0