U.S. Stock Indexes Firmer Early Monday; Downbeat China Econ. Data Limits Gains

* LATEST MARKET DEVELOPMENTS *

In overnight news, Chinese economic data released Monday was again downbeat, showing a weak manufacturing sector via its PMI index. China is on holiday this week, celebrating Golden Week. A major Japanese economic report was also released Monday and it also showed Japanese companies are pessimistic regarding their business prospects. In Europe, there was some better-than-expected euro zone manufacturing data issued Monday, which helped to lift European stock markets. Spanish and Italian bond yields did edge down Monday. Moody’s is set to release later Monday its latest credit rating on Spain. Later this week there will be some more important U.S. economic data released, including the FOMC minutes on Thursday and the employment report on Friday. U.S. economic data due for release Monday includes the U.S. manufacturing PMI, the ISM report on business, construction spending and the global manufacturing PMI.–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 below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at 1,444.00 and then at last week’s high of 1,456.60. Buy stops likely reside just above those levels. Downside support for active traders today is located at last week’s low of 1,424.50 and then at 1,415.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: The shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is located at 2,821.25 and then at 2,835.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 2,800.00 and then at the overnight low of 2,778.50. 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 13,395 and then at 13,355. Buy stops likely reside just above technical resistance at 13,455 and then at 13,500. Shorter-term moving averages are neutral early today, as the 4-day moving average is below the 9-day and 18-day. The 9-day moving average is above the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are bearish early today. Wyckoff’s Intra-Day Market Rating: 5.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are firmer today as bulls still have some upside near-term technical 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 149 28/32 and then at last week’s high of 150 9/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 149 11/32 and then at 149 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are slightly higher early today. Bulls still have some upside 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 133.21.5 and then at last week’s high of 133.27.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 133.13.0 and then at 133.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

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 80.25 and then at 80.50. Shorter-term support is seen at the overnight low of 79.80 and then at 79.50. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Crude oil prices are slightly lower early today. Bulls and bears are presently on a level near-term technical playing field. In November Nymex crude, look for buy stops to reside just above resistance at the overnight high of $92.18 and then at $92.50. Look for sell stops just below technical support at the overnight low of $91.26 and then at $91.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were mostly lower in overnight trading. Corn is trading near steady after its limit-up move on Friday, following a bullish USDA quarterly grain stocks report on Friday. Corn Bulls have some fresh upside technical momentum but need to show that important follow-through strength early this week, to then suggest price can trend higher. Soybean bulls are still struggling, while wheat bulls still have the overall technical edge amid choppy and sideways trading.