October 9–Jim Wyckoff’s Early Morning Web Log
OVERNIGHT/EARLY MORNING DEVELOPMENTS
The real feature in overnight/early morning trading today is markets reacting to North Korea’s first detonation of a nuclear device overnight. U.S. stocks are modestly lower on the news, while the gold and crude oil markets are moderately higher in the news. U.S. T-Bond and T-Note markets, and the IMM currency futures markets open outcry session, are closed today for the Columbus Day holiday.
U.S. ECONOMIC REPORTS/EVENTS
There are no major U.S. reports out today. San Francisco Fed president Yellen speaks today.
U.S. STOCK INDEXES
The stock indexes are moderately lower in early morning electronic trading, amid uncertainty regarding world reaction to the North Korean nuclear test overnight.
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 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish today. Today, shorter-term technical support comes in at Friday’s low of 1,352.70. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at 1,347.00. Upside resistance for active traders today is located at the overnight high of 1,358.30. Buy stops are likely located just above that price level, and then more buy stops are likely located just above chart resistance at the contract high of 1,363.20. Wyckoff’s Intra-day Market Rating: 5.0
PIVOT POINT LEVELS FOR DECEMBER S&P 500:
Pivot:———— 1,357.75
1st Support:—— 1,353.83
2nd Support:—— 1,348.90
1st Resistance:— 1,362.65
2nd Resistance:— 1,366.50
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 and 18-day. The 9-day moving average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical support is located at Friday’s low of 740.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 735.00. On the upside, short-term resistance is seen at 745.00. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at last week’s high of 749.25. Wyckoff’s Intra-Day Market Rating: 5.0
PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:
Pivot:———— 744.35
1st Support:—— 740.05
2nd Support:—— 735.70
1st Resistance:— 748.75
2nd Resistance:— 753.05
December Dow: For today, sell stops likely reside just below support at Friday’s low of 11,867 and then more stops just below support at 11,830. Buy stops likely reside just above shorter-term technical resistance at last week’s contract high of 11,940 and then more buy stops just above resistance at 11,975. Shorter-term moving averages are bullish, as the 4-day moving average is above the 9-day and 18-day. The 9-day moving average is above the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral to bearish for today. Wyckoff’s Intra-Day Market Rating: 5.0
PIVOT POINT LEVELS FOR DECEMBER DOW:
Pivot:———— 11,905
1st Support:—— 11,880
2nd Support:—— 11,842
1st Resistance:— 11,943
2nd Resistance:— 11,968
U.S. TREASURY BONDS AND NOTES
U.S. T-Bonds and T-Notes are closed today, in observance of the U.S. Columbus Day holiday.
