* LATEST MARKET DEVELOPMENTS *

The market place awaits the all-important U.S. employment report that is due out Friday morning. The key non-farm payrolls component of the jobs report is forecast to come in at up 125,000 in October. Look for active trading in many markets in the immediate aftermath of the jobs report. In European trading, stocks fell overnight and the Euro currency was pressured following some fresh economic news out of Spain showing its manufacturing sector weakened further in October. It was also reported Friday that the overall European Union manufacturing sector continued to contract in October for the 15th straight month, with a PMI reading of 45.4. Any PMI reading below 50.0 depicts a contracting manufacturing sector. Recent economic data coming from the European Union paints a gloomy economic
picture for the EU in the coming months. Meantime, Hong Kong’s Hang Seng stock index notched a 15-month high Friday, as Asian markets reacted to the improving U.S. economic data coming out of the U.S. on Thursday. Other U.S. economic data due for release Friday includes manufacturers’ shipments and inventories and the global manufacturing purchasing managers index.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are near steady early today. 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 to bullish early today. Today, shorter-term technical resistance comes in at 1,433.10 and then at 1,450.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at 1,410.00 and then at Thursday’s low of 1,399.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.0

Nasdaq index futures: Prices are near steady early today. 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 average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is located at 2,700.00 and then at 2,725.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 2,675.00 and then at 2,650.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

Dow futures: Prices are near steady early today. Sell stops likely reside just below technical support at 13,100 and then at Thursday’s low of 13,070. Buy stops likely reside just above technical resistance at Thursday’s high of 13,210 and then at 13,250. 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 to bullish early today. Wyckoff’s Intra-Day Market Rating: 5.0

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are slightly lower early today as trading remains choppy. 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 148 24/32 and then at 149 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 148 10/32 and then at 148 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

December U.S. T-Notes: Prices are near steady early today. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term resistance lies at the overnight high of 132.28.5 and then at this week’s high of 133.02.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.20.5 and then at this week’s low of 132.12.5. 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 higher in early U.S. trading today and poked to a fresh seven-week high overnight. Bulls have now regained some upside momentum late this week. Slow stochastics for the dollar index are neutral early today. The dollar index finds shorter-term technical resistance at the overnight high of 80.48 and then at 80.75. Shorter-term support is seen at the overnight low of 80.09 and then at Thursday’s low of 79.92. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Crude oil prices are weaker early today. Bears still have the overall near-term technical advantage as a seven-week-old downtrend is in place on the daily bar chart. In December Nymex crude, look for buy stops to reside just above resistance at this week’s high of $87.42 and then at $88.00. Look for sell stops just below technical support at $86.00 and then at $85.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

Markets were lower in overnight trading. The key outside markets are bearish for the grains early today, as the U.S. dollar index is higher and crude oil prices are lower. Grains will likely react to this morning’s U.S. jobs report. Weekly USDA export sales data is also out this morning, delayed by one day due to the storm.