* LATEST MARKET DEVELOPMENTS *

The market place is generally quiet Wednesday morning. There was some more weak economic data coming out of China overnight, as the Chinese non-manufacturing purchasing managers index fell in September, while consumer sentiment also weakened last month. Meantime, retail sales data in the
17 countries of the Euro zone rose slightly in August, for the fourth straight monthly gain. China is on holiday this week, celebrating Golden Week. 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. The market place will also monitor the U.S. presidential debate Wednesday night. In Europe, the European Central Bank and Bank of England hold meetings Thursday. The Bank of Japan holds its monthly meeting Thursday and Friday. U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the ISM non-manufacturing report, the weekly DOE energy stocks report and the global services PMI.–Jim

U.S. STOCK INDEXES

S&P 500 futures: The shorter-term moving averages (4-, 9- and 18-day) are still bearish early today. The 4-day moving average is below the 9-day and 18-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 this week’s high of 1,451.20 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 Tuesday’s low of 1,433.00 and then at last week’s low of 1,424.50. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.0

Nasdaq index futures: The shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-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 Tuesday’s high of 2,807.75 and then at this week’s high of 2,822.50. Buy stops likely reside
just above those levels. On the downside, short-term support is seen at the overnight low of 2,788.00 and then at this week’s low of 2,777.75. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

Dow futures: Sell stops likely reside just below technical support at Tuesday’s low of 13,355 and then at last week’s low of 13,290. Buy stops likely reside just above technical resistance at 13,450 and then at Tuesday’s high of 13,490. 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 neutral to bearish early today. Wyckoff’s Intra-Day Market Rating: 5.0

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 to bullish early today. Shorter-term resistance lies at last week’s
high of 150 9/32 and then at 150 16/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 149 23/32 and then at 149 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are firmer early today. Bulls still have some 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 last week’s high of 133.27.0 and then at 134.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 133.18.5 and then at Tuesday’s low of 133.12.5. 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 firmer in early U.S. trading today, on tepid short covering in a bear market. Bears still 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 80.06 and then at this week’s high of 80.25. Shorter-term support is seen at the overnight low of 79.79 and then at this week’s low of 79.55. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Crude oil prices are weaker early today. Bulls and bears are presently on an overall level near-term technical playing field. In November Nymex crude, look for buy stops to reside just above resistance at the overnight high of $91.82 and then at $92.50. Look for sell stops just below technical support at $91.00 and then at $90.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

Markets were lower in overnight trading. The grain market bulls are fading amid harvest pressure and weakening worldwide demand for grains at higher price levels. It’s my bias that all three major grains have put in major tops. Even if market tops are in place that does not automatically suggest downtrends will develop. More likely is choppy and sideways trading action, with just a slight downside bias.