Thursday, October 26–Jim Wyckoff’s Early Morning Web Log
OVERNIGHT/EARLY MORNING DEVELOPMENTS
The feature in overnight/early morning trading today is firmer stock indexes and Treasuries. The U.S. dollar is slightly lower today and crude oil is weaker.
U.S. STOCK INDEXES
The stock indexes are firmer in early morning electronic trading. Bulls still have upside technical momentum on their side following recent gains to multi-month and contract highs. 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 bullish today. Today, shorter-term technical support comes in at the overnight low of 1,388.80. 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 1,395.00. 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:———— 1,386.70
1st Support:—— 1,383.90
2nd Support:—— 1,378.60
1st Resistance:— 1,392.00
2nd Resistance:— 1,394.80
December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are neutral today. The 4-day moving average is below 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 768.00. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at Wednesday’s low of 764.75. On the upside, short-term resistance is seen at the October high of 777.30. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at 780.00. Wyckoff’s Intra-Day Market Rating: 7.0
PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:
Pivot:———— 770.35
1st Support:—— 767.40
2nd Support:—— 761.85
1st Resistance:— 775.95
2nd Resistance:— 778.85
December Dow: For today, sell stops likely reside just below support at Wednesday’s low of 12,120 and then more stops just below support at 12,100. Buy stops likely reside just above shorter-term technical resistance at 12,200 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: 8.0
PIVOT POINT LEVELS FOR DECEMBER DOW:
Pivot:———— 12,168
1st Support:—— 12,141
2nd Support:—— 12,093
1st Resistance:— 12,216
2nd Resistance:— 12,243
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. Bulls have regained some near-term technical momentum in the wake of the FOMC meeting, the results of which were deemed friendly for Treasuries.
December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are still bearish today. The 4-day moving average is below the 9-day today. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish for today. Shorter-term technical resistance lies at 111 even. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at 111 6/32. Shorter-term technical support lies at the overnight low of 110 23/32. Sell stops likely reside just below that level. More sell stops are likely located below support at 110 16/32. Wyckoff’s Intra-Day Market Rating: 6.0
PIVOT POINT LEVELS FOR DECEMBER T-BONDS:
Pivot:———– 110 17/32
1st Support:—– 110 8/32
2nd Support:—– 109 21/32
1st Resistance:– 111 4/32
2nd Resistance:– 111 13/32
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 107.08.0, and more buy stops are likely located just above resistance at 107.14.0. Shorter-term moving averages are still bearish for today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Sell stop orders are likely located just below support at 107.00.0, and then more sell stops just below support at 106.25.5. Wyckoff’s Intra Day Market Rating: 6.0
PIVOT POINT LEVELS FOR DECEMBER T-NOTES:
Pivot:———— 106.31.0
1st Support:—— 106.26.0
2nd Support:—— 106.15.0
1st Resistance:— 107.10.0
2nd Resistance:— 107.15.0
