Markets Quieter Monday, Awaiting FOMC Meeting

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* LATEST MARKET DEVELOPMENTS *

In overnight news, European stock markets were firmer along with the Euro currency amid Spanish elections that showed the ruling conservative party doing well. Such bolstered notions Spain will be seeking EU financial assistance in the near term. There was some disappointing economic news from Japan that suggests the Bank of Japan will implement fresh monetary stimulus measures soon. Otherwise, it was a quiet start to the new trading week in Asia and Europe. Focus of the market place this week will be on Monday night's U.S. presidential debate and on the latest meeting of the U.S. Federal Reserve's FOMC, which begins Tuesday. Tensions in the Middle East are ratcheting a bit higher following fresh violence in Lebanon. There is no major U.S. economic data due for release Monday.--Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer early today, on short covering and bargain hunting. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at 1,440.00 and then at Friday's high of 1,453.20. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,421.30 and then at the October low of 1,416.30. Sell stops are likely located just below those levels. Wyckoff's Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are higher early today after hitting a fresh 2.5-month low early on today. 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 neutral early today. Shorter-term technical resistance is located at 2,700.00 and then at 2,715.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,657.50 and then at 2,650.00. Sell stops are likely located just below those levels. Wyckoff's Intra-Day Market Rating: 6.0

Dow futures: Sell stops likely reside just below technical support at 13,255 and then at 13,200. Buy stops likely reside just above technical resistance at 13,350 and then at 13,400. 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: 5.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are lower early today. Bears have gained fresh downside technical momentum recently. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at 147 even and then at 147 16/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at 146 16/32 and then at last week's low of 146 5/32. Sell stops likely reside just below those levels. Wyckoff's Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are lower early today. Bears still have some downside momentum. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at the overnight high of 132.13.5 and then at 132.20.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at last week's low of 131.29.0 and then at 131.23.0. Sell stops likely reside just below those levels. Wyckoff's Intra-Day Market Rating: 4.0

U.S. DOLLAR INDEX

The December U.S. dollar index is weaker in early U.S. trading today. Bears have the overall near-term technical advantage. Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at the overnight high of 79.74 and then at last week's high of 80.04. Shorter-term support is seen at Friday's low of 79.37 and then at 79.03. Wyckoff's Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Crude oil prices are modestly higher early today. Bulls and bears are on an overall level near-term technical playing field, amid choppy trading. In December Nymex crude, look for buy stops to reside just above resistance at $92.00 and then at $92.50. Look for sell stops just below technical support at $90.00 and then at $89.00. Wyckoff's Intra-Day Market Rating: 5.5

GRAINS

Markets were higher in overnight trading, on more short covering and bargain hunting. Bulls are regaining upside momentum. All three grains were on the verge of technical breakdowns, but have held above key chart levels. The key outside markets are in a bullish posture for the grains early today, as the U.S. dollar index is weaker and crude oil prices are firmer.

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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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