* LATEST MARKET DEVELOPMENTS *

Tuesday is a bit of a “risk-on” trading day in the market place, despite the uncertainty of the U.S. presidential election results, which are likely to be known by Wednesday morning. In overnight news, European stocks were up slightly despite some fresh downbeat economic news coming out of the European Union Tuesday. European market watchers are now looking to a Greek parliamentary vote on fresh austerity measures which is scheduled for Wednesday. The European Central Bank holds its monthly meeting on Thursday. There is a general leadership conference in China later this week, at which time new leaders in China will be selected. Australia’s central bank also met Tuesday to discuss its monetary policy and made no major changes. Many thought the Australian central bank would ease monetary policy. U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports and the global services PMI.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer 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 last week’s high of 1,431.30 and then at 1,440.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 1,409.90 and then at 1,400.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are 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 to bullish early today. Shorter-term technical resistance is located at last week’s high of 2,694.00 and then at 2,705.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 2,653.25 and then at this week’s low of 2,634.75. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

Dow futures: Prices are firmer early today. Sell stops likely reside just below technical support at 13,050 and then at 13,000. Buy stops likely reside just above technical resistance at 13,150 and then at 13,200. 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 bullish early today. Wyckoff’s Intra-Day Market Rating: 5.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are weaker early today. Trading remains choppy but the bulls have the overall near-term technical advantage. 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 neutral early today. Shorter-term resistance lies at the overnight high of 149 8/32 and then at Monday’s high of 149 15/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 148 18/32 and then at 148 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are weaker early today but the bulls maintain the overall near-term technical advantage. 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 neutral early today. Shorter-term resistance lies at Monday’s high of 133.07.5 and then at 133.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.29.0 and then at Monday’s low of 132.25.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

U.S. DOLLAR INDEX

The December U.S. dollar index is weaker in early U.S. trading today on some profit taking from recent gains. 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 Monday’s low of 80.59 and then at 80.42. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Crude oil prices are firmer early today on short covering after prices hit a four-month low on Monday. 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 $87.00 and then at $87.50. Look for sell stops just below technical support at the overnight low of $85.42 and then at $85.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Markets were higher in overnight trading on short covering and bargain hunting. The key outside markets are modestly bullish for the grains early today, as the U.S. dollar index is weaker and crude oil prices are firmer. It is my bias that the grain markets do not have strong downside price potential and are likely to work sideways to higher in to the end of the year.