OVERNIGHT/EARLY MORNING DEVELOPMENTS

The U.S. stock indexes were lower in overnight electronic trading. The U.S. dollar is stronger versus the major currencies in early trading, gold is sharply lower, crude oil is lower and U.S. Treasury Bonds are lower in early dealings. Grains were mixed in overnight electronic trading. There was news overnight that Iranian officials are agreeable to a meeting between the U.S. and the EU, regarding Iran's nuclear development. That hit the energies hard on the downside overnight, which also helped to pressure the metals sharply lower.

U.S. ECONOMIC REPORTS

On tap today is the Challenger layoffs survey, weekly jobless claims, non-farm labor productivity, the ISM manufacturing index, construction spending, chain store and auto sales reports, and the DOE energy stocks report.

U.S. STOCK INDEXES

The indexes were lower in overnight electronic trading. This week's price action has produced more near-term chart damage to suggest there is some down-trending price action in store for the near term. But I don't look for any strong price trends to develop in the indexes. More likely is choppier and more sideways trading action heading into the normally quieter summer months. Look for quieter trading today, heading into Friday morning's all-important U.S. jobs report, which is expected to be friendly to the stock indexes.

September S&P 500: The shorter-term moving averages (9- and 18-day) are still bearish. However, the 4-day moving average has moved above the 9-day and produce a minor buy signal. Today, key shorter-term technical support comes in at Tuesday's low of 1,270.00. Sell stops likely reside just under this price level. Major support is seen at the May low of 1,259.50. Key upside resistance for active traders today is the 1,285.00 level. Buy stops are likely just above that price level.

September Nasdaq: The shorter-term moving averages (4- 9- and 18-day) are still bearish. However, the 4-day has crossed above the 9-day moving average to produce a minor buy signal. Also, slow stochastics suggest an oversold market that is due for a rebound very soon. Today, key shorter-term technical support is the May low of 1,1583.00. Heavy sell stops likely reside below that level. On the upside, short-term resistance is seen at the 1,620.00 level. Buy stops are likely located just above that level.

September Dow: Wednesday saw a quieter "inside day" for the Dow, after big losses Tuesday. That "pause" is not bullish. However, slow stochastics do show a market that is oversold and due for a corrective bounce soon. The next major shorter-term downside objective for the bears is closing prices below solid support at the May low of 11,150 price level. Heavy sell stops likely reside just below that level. Buy stops likely reside just above shorter-term technical resistance at Tuesday's high of 11,330.

U.S. TREASURY BONDS AND NOTES

Both notes and bond prices were lower in overnight and early open-outcry trading in Chicago. Bears are in firm overall near-term technical control of both bonds and notes. Look for more subdued trading today, heading into Friday morning's key U.S. jobs report.

September U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are turning bearish. The 4-day moving average has moved below the 9-day average and is poised to cross below the 18-day. Shorter-term resistance lies 106 16/32 and then at 107 even. Buy stops likely lie just above the 107 even level. A push below support at 105 20/32 would provide the bears with fresh short-term downside technical momentum. Sell stops likely reside just below that level. Look for a downside day all day today, barring any bullish surprises from today's economic data.

September U.S. T-Notes: Prices are lower in early morning dealings. Buy stops likely reside just above shorter-term resistance at 105.00.0. Shorter-term moving averages are still turning bearish. The 4-day moving average has moved below the 9-day average, and today moved below the 18-day moving average. A move in prices below major support at the contract low of 104.13.0 would uncover heavy sell stops just below that level.

CURRENCIES

The September U.S. dollar index is solidly higher in early morning dealings and the currencies are lower. The greenback is benefiting from lower gold and oil prices overnight. Price action has become choppier in the currencies, heading into summertime. Recent price trends (down on the DX and up in the currencies) have now weakened a bit, but are still in place. Traders are awaiting Friday's key U.S. jobs data for direction. The September U.S. dollar index finds key shorter-term technical support at Wednesday's low of 84.44 and resistance at Wednesday's and last week's high of 84.90. Key shorter-term technical support in the September Euro today is located at 1.2790. Heavy sell stops likely reside just below that key support level. Shorter-term technical resistance for the Euro is seen at 1.2906--Wednesday's high. Buy stops likely reside just above that key price level.

METALS

The metals are sharply lower early morning dealings. A stronger dollar index and lower crude oil prices today will help out the metals bears. Serious chart damage has occurred in gold today, as prices fell below major near-term support at the May lows, and today hit a fresh five-week low of $631.50, as of this writing. Key shorter-term technical support for August gold today is the $630.00 level. Sell stops likely reside just below that level, while buy stops likely reside just above shorter-term resistance at $651.30 in August gold--today's high.

ENERGIES

Prices are lower in early electronic dealings, on news overnight that Iran is agreeable to a meeting with the U.S. and EU on its nuclear program. The weekly DOE energy report is out today. In July crude oil, look for buy stops to reside just above resistance at $71.50. Look for sell stops just below major support at $70.00. I still look for more trading within a range--bound by key near-term support at $68.00 in July crude and solid resistance at $75.00. A drop below the aforementioned trading range--including multiple closes below it--would then likely mean a trading range in crude oil prices between $65.00 and $70.00. It's very likely going to take another geopolitical market "shock" to move crude above $75.00.

GRAINS

Prices were mixed in overnight electronic trading. Corn and soybeans were weaker and wheat was slightly higher. Weekly export sales data is delayed until Friday, due to Monday's holiday. Big losses in wheat late in the day Wednesday could spill over into more selling early today. Sharp losses in metals and lower crude oil prices today will also limit buying interest in the grains. Look for the bears to have the advantage today--at least in early dealings.