* LATEST MARKET DEVELOPMENTS *

In overnight trading, the European markets are awaiting the results of yet another key meeting of Euro zone leaders in Brussels Monday, to decide when and how to disburse fresh bailout funds to cash-starved Greece. Most market watchers think EU leaders will grant new monies to Greece very soon,
if not Monday. It was reported Monday that German consumer confidence has dropped just ahead of the Christmas season. The latest auctions of 6- and 12-month German treasury bills are still yielding negative returns, as has been the case since July. Such suggests European investors are still very wary of the European Union sovereign debt crisis being resolved any time soon. Meantime, in the U.S. traders and investors are coming back from the Thanksgiving holiday and will again focus on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” that is approaching. Congress comes back from its Thanksgiving break this week, so there will likely be some more news on the fiscal cliff front this week, which could be market-sensitive. U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are weaker early today, on a corrective pullback from good gains posted on Friday. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-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 Friday’s high of 1,407.20 and then at 1,415.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at Friday’s low of 1,387.10 and then at 1,375.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 4.5

Nasdaq index futures: Prices are weaker early today on a corrective pullback from Friday’s gains. The shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above 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 Friday’s high of 2,638.75 and then at 2,650.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,623.00 and then at 2,605.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

Dow futures: Prices are lower early today, on a corrective pullback from Friday’s gains. Sell stops likely reside just below technical support at 12,900 and then at Friday’s low of 12,865. Buy stops likely reside just above technical resistance at 12,961 and then at 13,000. 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 bullish early today. Wyckoff’s Intra-Day Market Rating: 4.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are higher early today and are seeing some short covering from recent selling pressure. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below 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 150 28/32 and then at 151 even. Buy stops likely reside just above those levels. Shorter-term technical support lies at 150 even and then at last week’s low of 149 23/32. 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 on short covering. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below 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 133.20.5 and then at 134.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 133.09.0 and then at 133.00.0. 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 slightly higher in early U.S. trading today. Bulls are fading. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at 80.50 and then at Friday’s high of 80.76. Shorter-term support is seen at last week’s low of 80.15 and then at 80.00. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Crude oil prices are slightly lower early today. A bullish rounding-bottom reversal pattern has formed on the daily bar chart. In January Nymex crude, look for buy stops to reside just above resistance at $89.00 and then at $90.00. Look for sell stops just below technical support at the overnight low of $87.64 and then at $87.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were firmer in overnight trading. Grain market bulls are working to regain some upside near-term technical momentum. Perceived bargain hunting has been seen recently. Focus of traders this week will be on fresh demand news and on weather in South American corn and soybean regions.