* LATEST MARKET DEVELOPMENTS *

It’s a bit of a “risk-off” trading day in the market place to start the new trading week. The U.S. presidential election on Tuesday is one big uncertainty for the market place, and the outcome will begin to be digested on Wednesday morning. There is a big leadership conference in China later this week, and there are key European Union events occurring this week. There is a vote in Greece’s parliament this week on new austerity programs. Spanish bond yields are on the rise Monday following some more dour economic data coming out of Spain. Australia’s central bank also meets this week to discuss its monetary policy. U.S. economic data due for release Monday includes the ISM non-manufacturing report and the employment trends index.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are slightly lower 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 early today. Today, shorter-term technical resistance comes in at 1,418.00 and then at 1,433.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at 1,399.00 and then at the October low of 1,393.20. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.0

Nasdaq index futures: Prices are slightly higher early today. The shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-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 2,650.00 and then at 2,675.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,634.75 and then at 2,626.00. 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 the September low of 12,965 and then at 12,900. Buy stops likely reside just above technical resistance at Thursday’s high of 13,050 and then at 13,100. Shorter-term moving averages are neutral early today, as the 4-day moving average is above the 9-day. The 9-day moving average is below 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 higher early today, on some short covering and safe-haven buying interest. 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 bullish early today. Shorter-term resistance lies at last week’s high of 149 11/32 and then at 150 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at 149 even and then at the overnight low of 148 14/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

December U.S. T-Notes: Prices are higher early today and hit a fresh three-week high overnight. 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 bullish early today. Shorter-term resistance lies at 133.08.0 and then at 133.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 133.00.0 and then at the overnight low of 132.25.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

U.S. DOLLAR INDEX

The December U.S. dollar index is higher in early U.S. trading today and hit a fresh two-month high overnight. Bulls have gained good upside momentum recently. Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at 81.00 and then at 81.25. Shorter-term support is seen at the overnight low of 80.59 and then at 80.42. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Crude oil prices are near steady early today but did hit a fresh four-month low overnight. 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 the overnight high of $85.23 and then at $86.00. Look for sell stops just below technical support at the overnight low of $84.34 and then at $84.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were mixed in overnight trading. The key outside markets are neutral to bearish for the grains early today, as the U.S. dollar index is higher and crude oil prices are near steady. The bulls are on the ropes early this week following Friday’s meltdown in the raw commodity sector.