* LATEST MARKET DEVELOPMENTS *

Asian and European markets were quiet overnight amid a lack of major, fresh fundamental news developments. Fourth-
quarter U.S. corporate earnings reports are starting to flow in, with Alcoa’s results coming in about as expected. The market place is also wondering what the next moves will be by U.S. lawmakers and the Obama administration regarding taxing and spending measures. Most look for a big fight among the politicians, which is keeping a lot of speculative and investment money on the sidelines at present. Traders are awaiting Thursday’s monthly European Central Bank meeting. Asian traders are awaiting a fresh batch of Chinese economic data due out later this week and during the weekend. U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE energy stocks report.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are near steady in early trading today, on more chart consolidation after hitting a 2.5-month high last week. Bulls still have some upside near-term technical momentum. The shorter-term moving averages (4-, 9-
and 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. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at last week’s high of 1,462.50 and then at the September high of 1,467.50. Buy stops likely reside just above those levels. Downside support for active traders today is located at 1,450.00 and then at 1,439.30. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.0

Nasdaq index futures: Prices are near steady early today. Bulls still have some upside near-term technical momentum. The shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is located at 2,725.00 and then at 2,736.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at 2,700.00 and then at 2,686.25. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

Dow futures: Prices are slightly higher early today on more chart consolidation from recent strong gains. Bulls still have some upside near-term technical momentum. Sell stops likely reside just below technical support at Tuesday’s low of 13,235 and then at 13,200. Buy stops likely reside just above technical resistance at Tuesday’s high of 13,309 and then at this week’s high of 13,325. Shorter-term moving averages are neutral early today, as the 4-day moving average is above the 9-day and 18-day. The 9-day moving average is below the 18-day moving average. Shorter-term oscillators (RSI, slow stochastics) are neutral early today. Wyckoff’s Intra-Day Market Rating: 5.0

U.S. TREASURY BONDS AND NOTES

March U.S. T-Bonds: Prices are slightly lower early today. Bears still have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Tuesday’s high of 145 13/32 and then at 145 19/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 144 25/32 and then at this week’s low of 144 12/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

March U.S. T-Notes: Prices are slightly lower early today. Bears have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Tuesday’s high of 131.29.0 and then at 132.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 131.21.5 and then at this week’s low of 131.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

U.S. DOLLAR INDEX

The March U.S. dollar index is higher in early U.S. trading. Greenback bulls still have some upside near-term technical momentum. Slow stochastics for the dollar index are neutral early today. The dollar index finds shorter-term technical resistance at this week’s high of 80.80 and then at last week’s high of 80.99. Shorter-term support is seen at the overnight low of 80.45 and then at this week’s low of 80.22. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Crude oil prices are near steady early today. Bulls still have the overall near-term technical advantage. In February Nymex crude, look for buy stops to reside just above resistance at last week’s high of $93.87 and then at $94.00. Look for sell stops just below technical support at Tuesday’s low of $92.67 and then at $92.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were mixed overnight. Looking for quieter trading today and Thursday, as traders are awaiting Friday’s monthly USDA supply and demand, quarterly grain stocks and annual grain summary reports. This particular batch of USDA data will important for grain price direction in coming weeks. The near-term technical postures of the grain markets remain bearish at present.