* LATEST MARKET DEVELOPMENTS *

In overnight news, there is a Euro-zone finance minister meeting in Brussels Monday, at which Greece’s financial bailout will be discussed. Despite the Greek parliament’s passage of a new austerity plan last week, there are still hurdles to clear before any disbursement of bailout finds by the European Union. Greece is on the verge of running out of cash. There is key economic data coming out of the EU later this week, as gross domestic product data is released by the major EU countries. Meantime, in China there was some better-than-expected trade figures released over the weekend. However, economic data in Japan was very weak as Japan’s third-quarter GDP contracted by 3.5% at an annualized rate, suggesting that country is headed for recession. In the U.S., government offices are closed for the Veteran’s Day holiday. Focus in the U.S. remains on resolving the so-called fiscal cliff matter by the end of the year. Ratings agencies have issued warnings to the U.S. that U.S. credit will be downgraded if the fiscal cliff problem is not sufficiently resolved. There is no major U.S. economic data due for release Monday, due to the holiday.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer early today on short covering after prices Friday and hit a 13-week low. Bears still have some downside momentum. 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 is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at Friday’s high of 1,388.00 and then at 1,400.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,372.40 and then at Friday’s low of 1,363.70. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are firmer early today on short covering after hitting a 13-week low on Friday. 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 bullish early today. Shorter-term technical resistance is located at Friday’s high of 2,607.25 and then at 2,623.25. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,576.50 and then at Friday’s low of 2,556.25. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

Dow futures: Prices are firmer early on short covering after prices on Friday hit a 13-week low. Sell stops likely reside just below technical support at 12,750 and then at Friday’s low of 12,705. Buy stops likely reside just above technical resistance at Friday’s high of 12,835 and then at 12,900. Shorter-term moving averages are bearish early today, as the 4-day moving average is below the 9-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 weaker early today on some profit taking from recent gains. Prices Friday hit a 13-week high. Bulls still have the overall near-term technical advantage and have upside near-term momentum. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at the overnight high of 151 27/32 and then at 152 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at 151 even and then at 150 19/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are near weaker early today on profit taking after hitting a 3.5-month high on Friday. The bulls maintain the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-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 133.30.5 and then at Friday’s high of 134.06.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 133.22.0 and then at 133.13.0. 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 slightly lower in early U.S. trading today but are hovering near a two-month high. Bulls still have some upside momentum on their side. Slow stochastics for the dollar index are neutral early today. The dollar index finds shorter-term technical resistance at last week’s high of 81.17 and then at 81.25. Shorter-term support is seen at the overnight low of 80.98 and then at 80.68. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Crude oil prices are near steady early today. Bears still have the overall near-term technical advantage as a two-month-old downtrend is in place on the daily bar chart. In December Nymex crude, look for buy stops to reside just above resistance at Friday’s high of $86.77 and then at $87.50. Look for sell stops just below technical support at the overnight low of $85.58 and then at $85.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were mixed but mostly lower in overnight trading. Soybean bulls have faded badly following a bearish USDA report issued last Friday morning. Fresh near-term chart damage has been inflicted in soybean futures, but corn and wheat futures markets are holding their own.