* LATEST MARKET DEVELOPMENTS *

After a long U.S. holiday weekend traders will again focus on corporate earnings reports. Heavyweight Apple reports its earnings Wednesday. In overnight news, the German ZEW economic indicators index came out stronger than expected, which supported European stock markets and the Euro currency. Spanish bond yields dropped again for the latest auction of Spanish government debt. This is a sign of improving investor sentiment toward the European Union and its handling of its sovereign debt crisis. The Bank of Japan announced more monetary policy stimulus measures Tuesday, but the move was expected by the market place and Asian markets were little moved. U.S. economic data due for release Tuesday includes the Chicago Fed national activity index, existing home sales, and the Richmond Fed business survey.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are near steady in early trading today and did hit another fresh five-year high overnight. Bulls have the overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at the overnight high of 1,484.60 and then at 1,490.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,475.10 and then at 1,465.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are near steady early and are hovering near a three-month high. Bulls have the overall near-term technical advantage. The shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is located at last week’s high of 2,751.50 and then at 2,765.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,726.75 and then at last week’s low of 2,705.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

Dow futures: Prices are slightly lower early today. Prices are hovering near a three-month high and bulls still have some upside near-term technical momentum. Sell stops likely reside just below technical support at Friday’s low of 13,520 and then at 13,500. Buy stops likely reside just above technical resistance at Friday’s for-the-move high of 13,580 and then at 13,600. Shorter-term moving averages are bullish early today, as the 4-day moving average is above 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 neutral to bullish early today. Wyckoff’s Intra-Day Market Rating: 5.0

U.S. TREASURY BONDS AND NOTES

March U.S. T-Bonds: Prices are lower early today. Bears still have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-
term resistance lies at the overnight high of 145 28/32 and then at 146 even. Buy stops likely reside just above those
levels. Shorter-term technical support lies at the overnight low of 145 8 and then at 145 even. Sell stops likely reside
just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are lower early today. Bears still have the slight overall near-term technical advantage. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at the overnight high of 132.04.5 and then at 132.08.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 131.28.0 and then at last week’s low of 131.22.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

U.S. DOLLAR INDEX

The March U.S. dollar index is lower early today. Greenback 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 80.00 and then at the overnight high of 80.19. Shorter-term support is seen at the overnight low of 79.78 and then at 79.50. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Crude oil prices are near steady early today and are hovering near a four-month high. Bulls still have upside momentum as a six-week-old uptrend is in place on the daily bar chart. In March Nymex crude, look for buy stops to reside just above resistance at last week’s high of $96.50 and then at $97.00. Look for sell stops just below technical support at $95.00 and then at $94.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were higher overnight. Grain futures markets have shown good upside price action recently to give the bulls early technical clues the grain markets have put in near-term lows and that price uptrends can now be established. Fresh speculative money appears to be flowing into the grain markets on the long side.