Tuesday, October 24–Jim Wyckoff’s Early Morning Web Log

OVERNIGHT/EARLY MORNING DEVELOPMENTS

The features in overnight/early morning trading today are lower Treasuries and stock indexes. The U.S. dollar is higher today and crude oil is weaker.

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U.S. STOCK INDEXES

The stock indexes are lower in early morning electronic trading. Bulls still have some upside technical momentum on their side following recent gains to multi-month highs. However, the markets are due for a corrective, 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 bearish today. Today, shorter-term technical support comes in at 1,375.00. Sell stops likely reside just under that level. More sell stops likely reside under shorter-term technical support at Monday’s low of 1,369.90. Upside resistance for active traders today is located at Tuesday’s contract high of 1,384.20. Buy stops are likely located just above that price level, and then more buy stops are likely located just above chart resistance at 1,390.00. Wyckoff’s Intra-day Market Rating: 6

PIVOT POINT LEVELS FOR DECEMBER S&P 500:

Pivot:———— 1,378.35
1st Support:—— 1,372.50
2nd Support:—— 1,364.25
1st Resistance:— 1,386.60
2nd Resistance:— 1,392.46

December Russell 2000: The shorter-term moving averages (4- 9-and 18-day) are still bullish today. However, the 4-day moving average is turning down. The 9-day moving average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical support is located at Monday’s low of 761.25. Sell stops likely reside just below that level, and then more sell stops are likely located just below technical support at 755.00. On the upside, short-term resistance is seen at 770.00. Buy stops are likely located just above that level. More buy stops are likely located just above resistance at last week’s high of 777.30. Wyckoff’s Intra-Day Market Rating: 6.0

PIVOT POINT LEVELS FOR DECEMBER RUSSELL 2000:

Pivot:———— 768.40
1st Support:—— 759.65
2nd Support:—— 752.50
1st Resistance:— 775.60
2nd Resistance:— 784.35

December Dow: For today, sell stops likely reside just below support at 12,100 and then more stops just below support at Monday’s low of 11,025. Buy stops likely reside just above shorter-term technical resistance at the contract high of 12,170 and then more buy stops just above resistance at 12,200. 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 to bullish for today. Wyckoff’s Intra-Day Market Rating: 7.0

PIVOT POINT LEVELS FOR DECEMBER DOW:

Pivot:———— 12,113
1st Support:—— 12,055
2nd Support:—— 11,968
1st Resistance:— 12,200
2nd Resistance:— 12,258

U.S. TREASURY BONDS AND NOTES

U.S. T-Bonds and T-Notes are weaker early today. Bears have taken near-term technical control of the markets, as downtrend lines are in place from the recent highs.

December U.S. T-Bonds: Shorter-term moving averages (4- 9- 18-day) are 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 neutral for today. Shorter-term technical resistance lies at 110 8/32. Buy stops likely reside just above that level. More buy stops likely reside just above technical resistance at Monday’s high of 110 19/32. Shorter-term technical support lies at Monday’s low of 109 27/32. Sell stops likely reside just below that level. More sell stops are likely located below support at the September low of 109 25/32. Wyckoff’s Intra-Day Market Rating: 4.0

PIVOT POINT LEVELS FOR DECEMBER T-BONDS:

Pivot:———– 110 5/32
1st Support:—– 109 23/32
2nd Support:—– 109 13/32
1st Resistance:– 110 15/32
2nd Resistance:– 110 29/32

December U.S. T-Notes: Shorter-term oscillators (RSI, slow stochastics) are bearish for today. Buy stops likely reside just above shorter-term technical resistance at Monday’s high of 107.00.0, and more buy stops are likely located just above resistance at 107.08.0. Shorter-term moving averages are 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 Monday’s low of 106.19.0, and then more sell stops just below support at the September low of 106.17.5. Wyckoff’s Intra Day Market Rating: 4.0

PIVOT POINT LEVELS FOR DECEMBER T-NOTES:

Pivot:———— 106.25.0
1st Support:—— 106.17.0
2nd Support:—— 106.12.0
1st Resistance:— 106.30.0
2nd Resistance:— 107.06.0