* LATEST MARKET DEVELOPMENTS *
Trading overseas overnight was fairly quiet. The Reserve Bank of Australia did cut its interest rate by 0.25%, to 3.25%. Euro zone economic data released Tuesday showed producer price inflation rose sharply in August, mainly due to higher oil prices. The annual rise in producer prices came in at a 2.7% rate versus 1.6% in July. 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 Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the ISM New York report on business, and domestic auto industry sales.–Jim
U.S. STOCK INDEXES
S&P 500 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 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 Monday’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 the overnight low of 1,436.50 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: 5.5
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 Monday’s high of 2,822.50 and then at 2,835.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,786.25 and then at Monday’s low of 2,777.75. 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 Monday’s low of 13,420 and then at 13,395. Buy stops likely reside just above technical resistance at 13,500 and then at Monday’s high of 13,525. 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 early today. Wyckoff’s Intra-Day Market Rating: 6.0
U.S. TREASURY BONDS AND NOTES
December U.S. T-Bonds: Prices are weaker today but 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 30/32 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 Monday’s low of 149 3/32 and then at 149 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5
December U.S. T-Notes: Prices are slightly lower 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 the overnight high of 133.21.0 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 Monday’s low of 133.11.5 and then at 133.04.5. 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 weaker in early U.S. trading today. 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 Monday’s high of 80.25 and then at 80.50. Shorter-term support is seen at Monday’s low of 79.67 and then at 79.50. Wyckoff’s Intra Day Market Rating: 4.5
NYMEX CRUDE OIL
Crude oil prices are near steady 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 $92.92 and then at Monday’s high of $93.33. Look for sell stops just below technical support at the overnight low of $92.04 and then at Monday’s low of $91.26. Wyckoff’s Intra-Day Market Rating: 5.0
GRAINS
Markets were lower in overnight trading. Corn Bulls had some fresh upside technical momentum but cannot seem to show that important follow-through strength early this week, to then suggest price can trend higher. Soybean bulls are struggling, while wheat bulls are also fading. It’s my bias that all three major grains have put in major tops.
