* LATEST MARKET DEVELOPMENTS *

Late Wednesday the Standard & Poors ratings agency downgraded Spain’s credit rating to near junk status. The Euro currency sold off and the U.S. dollar index rallied in the immediate aftermath of that news. However, by Thursday morning the Euro had recovered its losses and the dollar index had pulled back. The S&P move was a bit surprising to the market place, but not really a significant shocker to change the overall perception of the Spain’s financial condition or the overall EU debt crisis. That notion was reinforced by a fairly well-subscribed Italian government bond auction on Thursday. However, the S&P downgrade bolstered ideas Spain will seek further bailout funds from the EU sooner rather than later. U.S. economic data due for release Thursday includes the weekly jobless claims report, import and export prices, international trade in goods and services, and the weekly DOE energy stocks report.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices hit a fresh five-week low overnight. 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 neutral early today. Today, shorter-term technical resistance comes in at 1,440.00 and then at 1,454.40. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,421.50 and then at 1,410.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices hit another fresh seven-week low overnight. 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 2,750.00 and then at 2,762.25. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,714.50 and then at 2,700.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

Dow futures: Sell stops likely reside just below technical support at Wednesday’s low of 13,261 and then at 13,200. Buy stops likely reside just above technical resistance at 13,350 and then at Wednesday’s high of 13,395. 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 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 early today. Shorter-term resistance lies at the overnight high of 149 4/32 and then at 149 16/32. Buy stops likely reside just above those
levels. Shorter-term technical support lies at 148 even and then at Wednesday’s low of 147 15/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are slightly 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 133.12.5 and then at 133.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 133.00.0 last week’s low of 132.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

U.S. DOLLAR INDEX

The December U.S. dollar index is weaker in early U.S. trading today. The greenback bears still have the overall near-term technical advantage, but the bulls did make some headway this week. Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at 80.00 and then at Wednesday’s high of 80.31. Shorter-term support is seen at 79.75 and then at 79.50. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Crude oil prices are firmer early today. Bulls and bears are on a level near-term technical playing field amid recent choppy trading. In November Nymex crude, look for buy stops to reside just above resistance at $93.00 and then at Wednesday’s high of $93.66. Look for sell stops just below technical support at the overnight low of $91.09 and then at $90.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Markets were mixed in overnight trading. Grain traders are awaiting this morning’s USDA supply and demand report. Many reckon USDA will increase the U.S. soybean production figure. The grain market bulls have faded recently amid harvest pressure and weakening worldwide demand for grains at higher price levels.