OVERNIGHT/EARLY MORNING DEVELOPMENTS
There is no real feature in overnight/early morning trading today. Traders are awaiting the key consumer price index report for direction today. Crude oil is steady, stock indexes are narrowly mixed and Treasuries are weaker early. The U.S. dollar is firmer early today.
U.S. ECONOMIC REPORTS/EVENTS
On tap for today is the consumer price index, the New York Fed’s manufacturing index, industrial production and capacity utilization, and the University of Michigan’s consumer sentiment index. Kansas City Fed president Hoenig speaks today.
U.S. STOCK INDEXES
The stock indexes are narrowly mixed in early morning electronic trading. Traders are awaiting CPI data. Bulls still have some near-term technical momentum on their side.
December S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are bullish today. The 4-day moving average is 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 Thursday’s low of 1,324.70. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at 1,318.00. Upside resistance for active traders today is located at this week’s high of 1,331.90. Buy stops are likely located just above that price level, and then more buy stops are likely located just above chart resistance at 1,338.00. Wyckoff’s Intra-day Market Rating: 7.0
PIVOT POINT LEVELS FOR DECEMBER S&P 500:
Pivot:———— 1,328.00
1st Support:—— 1,326.00
2nd Support:—— 1,322.75
1st Resistance:— 1,331.40
2nd Resistance:— 1,333.35
December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are bullish today. The 4-day moving average is 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 Thursday’s low of 730.80. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 723.00. On the upside, short-term resistance is seen at this week’s high of 738.25. 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:———— 734.25
1st Support:—— 730.75
2nd Support:—— 727.25
1st Resistance:— 737.75
2nd Resistance:— 741.25
December Dow: For today, sell stops likely reside just below support at Thursday’s low of 11,585 and then more stops just below support at Wednesday’s low of 11,563. Buy stops likely reside just above shorter-term technical resistance at this week’s high of 11,665 and then more buy stops just above resistance at 11,700. Shorter-term moving averages are bullish today, as the 4-day moving average is 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 to bullish for today. Wyckoff’s Intra-Day Market Rating: 7.0
PIVOT POINT LEVELS FOR DECEMBER DOW:
Pivot:———— 11,617
1st Support:—— 11,595
2nd Support:—— 11,562
1st Resistance:— 11,650
2nd Resistance:— 11,672
U.S. TREASURY BONDS AND NOTES
Prices are weaker in early trading in Chicago. Traders are awaiting the CPI report.
December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are still bullish today. The 4-day moving average is 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 bearish for today. Shorter-term technical resistance lies at 110 24/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at of 111 even. Shorter-term technical support lies at Thursday’s low of 110 14/32. Sell stops likely reside just below that level. More sell stops are likely located below support at this week’s low of 110 1/32. Wyckoff’s Intra-Day Market Rating: 6.0
PIVOT POINT LEVELS FOR DECEMBER T-BONDS:
Pivot:———– 110 22/32
1st Support:—– 110 9/32
2nd Support:—– 110 even
1st Resistance:– 110 31/32
2nd Resistance:– 111 12/32
December U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are bearish for today. Buy stops likely reside just above shorter-term technical resistance at 107.08.0, and more buy stops are likely located just above resistance at Thursday’s high of 107.16.0. Shorter-term moving averages are neutral for today. The 4-day moving average is above the 9-day and is above the 18-day. The 9-day is below the 18-day moving average. Sell stop orders are likely located just below support at the overnight low of 106.30.0, and then more sell stops just below support at 106.24.0. Wyckoff’s Intra Day Market Rating: 6.0
PIVOT POINT LEVELS FOR DECEMBER T-NOTES:
Pivot:———— 107.05.0
1st Support:—— 106.27.0
2nd Support:—— 106.20.0
1st Resistance:— 107.12.0
2nd Resistance:— 107.22.0
