OVERNIGHT/EARLY MORNING DEVELOPMENTS
There is no real feature in overnight/early morning trading today. Crude oil is firmer, stock indexes are mixed and Treasuries are firmer early. The U.S. dollar is near steady early today.
U.S. ECONOMIC REPORTS/EVENTS
On tap for today is the MBA refinancing index, weekly DOE liquid energy stocks and the federal budget statement. U.S. Treasury Secretary Paulson speaks in Washington today.
U.S. STOCK INDEXES
The stock indexes are narrowly mixed in early morning electronic trading. Bulls have regained some technical momentum after good gains Tuesday.
December S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are turning bullish today. The 4-day moving average is moving above the 9-day and is above the 18-day moving average. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral for today. Today, shorter-term technical support comes in at 1,318.00. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at Tuesday’s low of 1,308.10. Upside resistance for active traders today is located at the September high of 1,327.50. Heavier buy stops are likely located just above that price level, and then more buy stops are likely located just above chart resistance at 1,330.00. Wyckoff’s Intra-day Market Rating: 7.0
PIVOT POINT LEVELS FOR DECEMBER S&P 500:
Pivot:———— 1,319.75
1st Support:—— 1,313.50
2nd Support:—— 1,301.85
1st Resistance:— 1,331.35
2nd Resistance:— 1,337.65
December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are turning bullish today. The 4-day moving average is moving above the 9-day today and is above the 18-day moving average. The 9-day moving average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical support is located at 723.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at Tuesday’s low of 714.05. On the upside, short-term resistance is seen at the September high of 735.00. Heavier buy stops are likely located just above that level. More buy stops are likely located just above resistance at 742.30. Wyckoff’s Intra-Day Market Rating: 6.0
PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:
Pivot:———— 726.05
1st Support:—— 719.60
2nd Support:—— 707.60
1st Resistance:— 738.05
2nd Resistance:— 744.50
December Dow: For today, sell stops likely reside just below support at 11,550 and then more stops just below support at 11,500. Buy stops likely reside just above shorter-term technical resistance at Tuesday’s high of 11,600 and then more buy stops just above resistance at 11,650. Shorter-term moving averages are turning bullish today, as the 4-day moving average is moving above the 9-day and is above the 18-day. 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: 7.5
PIVOT POINT LEVELS FOR DECEMBER DOW:
Pivot:———— 11,552
1st Support:—— 11,503
2nd Support:—— 11,422
1st Resistance:— 11,633
2nd Resistance:— 11,682
U.S. TREASURY BONDS AND NOTES
Prices are firmer in early trading in Chicago. The bulls needed to show some fresh power and they did that Tuesday to regain some near-term technical momentum.
December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are turning bullish today. The 4-day moving average is moving above the 9-day and is above the 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish for today. Shorter-term technical resistance lies at Tuesday’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 110 16/32. Sell stops likely reside just below that level. More sell stops are likely located below support at Tuesday’s low of 110 1/32. Wyckoff’s Intra-Day Market Rating: 6.0
PIVOT POINT LEVELS FOR DECEMBER T-BONDS:
Pivot:———– 110 16/32
1st Support:—– 110 7/32
2nd Support:—– 109 23/32
1st Resistance:– 111 even
2nd Resistance:– 111 9/32
December U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are neutral for today. Buy stops likely reside just above shorter-term technical resistance 107.10.0, and more buy stops are likely located just above resistance at the September high of 107.14.5. Shorter-term moving averages are turning bullish for today. The 4-day moving average is moving above the 9-day and is above the 18-day. The 9-day is above the 18-day moving average. Sell stop orders are likely located just below support at 107.00.0, and then more sell stops just below support at 106.24.0. Wyckoff’s Intra Day Market Rating: 6.5
PIVOT POINT LEVELS FOR DECEMBER T-NOTES:
Pivot:———— 107.02.0
1st Support:—— 106.29.0
2nd Support:—— 106.21.0
1st Resistance:— 107.10.0
2nd Resistance:— 107.15.0
