Friday, October 27–Jim Wyckoff’s Early Morning Web Log
OVERNIGHT/EARLY MORNING DEVELOPMENTS
There is no real feature in overnight/early morning trading today. Stock indexes are slightly lower and Treasuries are slightly higher. The U.S. dollar is slightly higher today and crude oil is slightly higher. Traders were awaiting this morning’s GDP report.
U.S. STOCK INDEXES
The stock indexes are weaker in early morning electronic trading. Bulls still have upside technical momentum on their side following recent gains to multi-month and contract highs. But the indexes are due for a profit-taking pullback soon.
December S&P 500: The shorter-term moving averages (4-, 9- and 18-day) are still bullish 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 today. Today, shorter-term technical support comes in at Thursday’s low of 1,385.00. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at Wednesday’s low of 1,381.40. Upside resistance for active traders today is located at Thursday’s contract high of 1,395.20. Buy stops are likely located just above that price level, and then more buy stops are likely located just above chart resistance at 1,400.00. Wyckoff’s Intra-day Market Rating: 8
PIVOT POINT LEVELS FOR DECEMBER S&P 500:
Pivot:———— 1,391.05
1st Support:—— 1,386.85
2nd Support:—— 1,380.85
1st Resistance:— 1,397.07
2nd Resistance:— 1,401.25
December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are bullish today. The 4-day moving average is back above the 9-day. The 9-day moving average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical support is located at 775.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at Thursday’s low of 767.75. On the upside, short-term resistance is seen at Thursday’s high of 780.00. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at 785.00. Wyckoff’s Intra-Day Market Rating: 7.0
PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:
Pivot:———— 775.68
1st Support:—— 771.37
2nd Support:—— 763.43
1st Resistance:— 783.62
2nd Resistance:— 787.95
December Dow: For today, sell stops likely reside just below support at Thursday’s low of 12,135 and then more stops just below support at 12,100. Buy stops likely reside just above shorter-term technical resistance at Thursday’s contract high of 12,213 and then more buy stops just above resistance at 12,250. Shorter-term moving averages are bullish, 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 for today. Wyckoff’s Intra-Day Market Rating: 7.0
PIVOT POINT LEVELS FOR DECEMBER DOW:
Pivot:———— 12,179
1st Support:—— 12,145
2nd Support:—— 12,101
1st Resistance:— 12,223
2nd Resistance:— 12,257
U.S. TREASURY BONDS AND NOTES
U.S. T-Bonds and T-Notes are firmer early today, on follow-through strength from good gains Wednesday and Thursday. Bulls have regained near-term technical momentum this week.
December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are turning bullish today. The 4-day moving average is above the 9-day today. The 9-day is turning up but is still below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish for today. Shorter-term technical resistance lies at 111 19/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at 111 24/32. Shorter-term technical support lies at the overnight low of 111 8/32. Sell stops likely reside just below that level. More sell stops are likely located below support at 111 even. Wyckoff’s Intra-Day Market Rating: 8.0
PIVOT POINT LEVELS FOR DECEMBER T-BONDS:
Pivot:———– 111 5/32
1st Support:—– 110 30/32
2nd Support:—– 110 15/32
1st Resistance:– 111 20/32
2nd Resistance:– 111 27/32
December U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are bullish for today. Buy stops likely reside just above shorter-term technical resistance at 107.20.0, and more buy stops are likely located just above resistance at 107.28.0. Shorter-term moving averages are turning bullish today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average, but is turning up. Sell stop orders are likely located just below support at the overnight low of 107.12.5, and then more sell stops just below support at 107.08.0. Wyckoff’s Intra Day Market Rating: 8.0
PIVOT POINT LEVELS FOR DECEMBER T-NOTES:
Pivot:———— 107.12.0
1st Support:—— 107.06.0
2nd Support:—— 106.30.0
1st Resistance:— 107.20.0
2nd Resistance:— 107.26.0
