Treasuries, Gold, Crude Lower Early; Greenback Strong

Monday, October 23--Jim Wyckoff's Early Morning Web Log

OVERNIGHT/EARLY MORNING DEVELOPMENTS

The features in overnight/early morning trading today are solid losses in Treasuries, gold and crude oil. The U.S. dollar is solidly higher today and stock indexes are weaker.

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U.S. STOCK INDEXES

The stock indexes are weaker in early morning electronic trading. Bulls still have some upside technical momentum on their side following recent gains to multi-month highs.

December S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are still 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 neutral today. Today, shorter-term technical support comes in at Friday's low of 1,369.80. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at last week's low of 1,364.10. Upside resistance for active traders today is located at 1,375.00. 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 1,380.20. Wyckoff's Intra-day Market Rating: 6

PIVOT POINT LEVELS FOR DECEMBER S&P 500:

Pivot:------------ 1,373.85 1st Support:------ 1,370.85 2nd Support:------ 1,366.85 1st Resistance:--- 1,377.85 2nd Resistance:--- 1,380.85

December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are still bullish today. However, the 4-day moving average is turning down. 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 764.40. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 760.00. On the upside, short-term resistance is seen at Friday's high of 773.30. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at last week's high of 777.30. Wyckoff's Intra-Day Market Rating: 5.0

PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:

Pivot:------------ 767.60 1st Support:------ 761.90 2nd Support:------ 758.70 1st Resistance:--- 770.80 2nd Resistance:--- 776.50

December Dow: For today, sell stops likely reside just below support at Friday's low of 12,000 and then more stops just below support at last week's low of 11,937. Buy stops likely reside just above shorter-term technical resistance at the contract high of 12,098 and then more buy stops just above resistance at 12,150. 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: 6.0

PIVOT POINT LEVELS FOR DECEMBER DOW:

Pivot:------------ 12,036 1st Support:------ 12,012 2nd Support:------ 11,976 1st Resistance:--- 12,072 2nd Resistance:--- 12,096

U.S. TREASURY BONDS AND NOTES

U.S. T-Bonds and T-Notes are solidly lower early today. Bears appear on the verge of taking near-term technical control of the markets today.

December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are bearish today. The 4-day moving average is poised to move below the 9-day today. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish for today. Shorter-term technical resistance lies at the overnight high of 110 19/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at Friday's high of 110 25/32. Shorter-term technical support lies at the overnight low of 110 3/32. Sell stops likely reside just below that level. More sell stops are likely located below support at 110 even. Wyckoff's Intra-Day Market Rating: 3.0

PIVOT POINT LEVELS FOR DECEMBER T-BONDS:

Pivot:----------- 110 20/32 1st Support:----- 110 16/32 2nd Support:----- 110 11/32 1st Resistance:-- 110 25/32 2nd Resistance:-- 110 29/32

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 the overnight high of 107.00.0, and more buy stops are likely located just above resistance at Friday's high of 107.04.5. Shorter-term moving averages are bearish for today. The 4-day moving average is below the 9-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 106.22.0, and then more sell stops just below support at 106.16.0. Wyckoff's Intra Day Market Rating: 3.0

PIVOT POINT LEVELS FOR DECEMBER T-NOTES:

Pivot:------------ 107.01.0 1st Support:------ 106.30.0 2nd Support:------ 106.26.0 1st Resistance:--- 107.05.0 2nd Resistance:--- 107.08.0