China Tuesday Moves to Stimulate its Economy

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* LATEST MARKET DEVELOPMENTS *

Overnight news saw the Chinese central bank inject fresh liquidity into China's financial system ($41 billion) via a daily operation, in an effort to stimulate economic growth. Asian stocks rallied on the China news. Tensions in the Middle East have ratcheted up a notch as Syria and Turkey are exchanging artillery fire on their borders. Meantime, European Union finance ministers are meeting in Luxembourg
Tuesday to work on a plan for EU bank supervision. Reports said little progress is being made. Spain has yet to ask for formal EU bailout assistance, even though European Central Bank president Draghi said Tuesday the ECB is ready to implement its bond buying program should Spain as for assistance. German Chancellor Angela Merkel arrives in Greece Tuesday to meet with Greek leadership on their debt
crisis. The Greek public is not in a mood for further austerity measures. The Euro currency is under more selling pressure Tuesday on these latest developments.--Jim

U.S. STOCK INDEXES

S&P 500 futures: The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical resistance comes in at Monday's high of 1,457.00 and then at the September high of 1,467.50. Buy stops likely reside just above those levels. Downside support for active traders today is located at 1,444.00 and then at 1,436.00. Sell stops are likely located just below those levels. Wyckoff's Intra-day Market Rating: 5.0

Nasdaq index futures: The shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is located at the overnight high of 2,786.75 and then at 2,800.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 2,762.25 and then at 2,750.00. Sell stops are likely located just below those levels. Wyckoff's Intra-Day Market Rating: 4.5

Dow futures: Sell stops likely reside just below technical support at 13,450 and then at 13,400. Buy stops likely reside just above technical resistance at Monday's high of 13,536 and then at last week's high of 13,597. Shorter-term moving averages are neutral early today, as the 4-day moving average is above the 9-day and 18-day. The 9-day moving average is below the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral early today. Wyckoff's Intra-Day Market Rating: 5.0

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are weaker early today. Shorter-term moving averages (4- 9- 18-day) are neutral early 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 to bearish early today. Shorter-term resistance lies at the overnight high of 148 13/32 and then at 149 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 147 27/32 and then at Monday's low of 147 10/32. Sell stops likely reside just below those levels. Wyckoff's Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are weaker early today. Shorter-term moving averages (4- 9- 18-day) are neutral early 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 bearish early today. Shorter-term resistance lies at the overnight high of 133.11.0 and then at 133.15.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at last week's low of 132.27.5 and then at 132.20.0. Sell stops likely reside just below those levels. Wyckoff's Intra-Day Market Rating: 4.5

U.S. DOLLAR INDEX

The December U.S. dollar index is firmer in early U.S. trading today, on more short covering in a bear market. Bears still have the overall near-term technical advantage. Slow stochastics for the dollar index are neutral early today. The dollar index finds shorter-term technical resistance at 80.00 and then at last week's high of 80.25. Shorter-term support is seen at the overnight low of 79.57 and then at Monday's low of 79.43. Wyckoff's Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Crude oil prices are firmer early today. Bears have the overall near-term technical advantage as prices are in a four-week-old downtrend on the daily bar chart. In November Nymex crude, look for buy stops to reside just above resistance at the overnight high of $90.33 and then at $91.00. Look for sell stops just below technical support at the overnight low of $89.29 and then at $88.95. Wyckoff's Intra-Day Market Rating: 5.5

GRAINS

Markets were higher in overnight trading, on short covering from recent selling pressure. Grain traders are awaiting Thursday's USDA supply and demand report. The grain market bulls have faded recently amid harvest pressure and weakening worldwide demand for grains at higher price levels.

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About the Author

Jim Wyckoff has been involved with the stock, financial and futures markets for more than 20 years. He was born and raised in Iowa, where he still resides.

Wyckoff became a financial journalist with Futures World News for many years, cutting his teeth as a reporter on the futures trading floors in Chicago and New York, where he covered every futures market traded in the United States at one time or another.

Not long after he began his career in financial journalism, he began studying technical analysis. By studying chart patterns and other technical indicators, he realized this approach to analyzing and trading markets could level the playing field between “professional insiders” in the markets and individual traders.

His extensive studies of technical analysis and knowledge of markets led to several positions, including chief technical analyst at several well-known companies. He says his mission is not just to generate profits for traders but to also provide them with educational and insightful information because, in the fascinating business of trading, one never stops learning.

Wyckoff received a Bachelor of Science degree at Iowa State University, graduating in 1984 with a major in journalism and a minor in economics. He and his wife have two children, a son in high school and a daughter in college.

When he’s not analyzing markets and educating traders, Wyckoff says he loves adventures, from driving a Jeep across the highest mountain pass in the continental United States to extreme winter camping in the Boundary Waters to hiking in the jungles of South America.

JimWyckoff

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