U.S. Stock Indexes Firmer Early Tuesday; U.S. Data Awaited

* LATEST MARKET DEVELOPMENTS *

In overnight news, European Union economic data showed Euro zone inflation was unchanged in September, at a 2.6% annual rate. The German ZEW economic expectations index rose in September, suggesting less risk for the German economy. The market place is awaiting the latest GDP report from China, due out Thursday. EU officials will also meet in Brussels Thursday to once again discuss the EU debt crisis. The Euro currency did get some support Tuesday on reports Spanish officials may be considering making a formal request to the EU for financial assistance. U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales data, the consumer price index, Treasury international capital data, industrial production and capacity utilization, and the NAHB housing market index.–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 bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at 1,450.00 and then at 1,460.00. Buy stops likely reside just
above those levels. Downside support for active traders today is located at 1,425.00 and then at Monday’s low of 1,416.30. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 5.5

Nasdaq index futures: Prices are firmer 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 bullish early today. Shorter-term technical resistance is located at 2,750.00 and then at 2,762.00. Buy stops likely reside just above those
levels. On the downside, short-term support is seen at the overnight low of 2,729.75 and then at Monday’s low of 2,705.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

Dow futures: Sell stops likely reside just below technical support at 13,359 and then at 13,300. Buy stops likely reside just above technical resistance at 13,400 and then at 13,450. Shorter-term moving averages are bearish early today, as the 4-day moving average is below 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: 5.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are lower early today. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 149 15/32 and then at this week’s high of 149 26/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at 148 16/32 and then at 148 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are weaker early today. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 133.11.0 and then at last week’s high of 133.17.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 133.00.0 and then at last week’s low of 132.26.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

U.S. DOLLAR INDEX

The December U.S. dollar index is lower in early U.S. trading today. The greenback bears have the overall near-term technical advantage. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at the overnight high of 79.81 and then at this week’s high of 80.04. Shorter-term support is seen at last week’s low of 79.43 and then at the October low of 79.18. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Crude oil prices are near steady early today. Bulls and bears are on a level near-term technical playing field.In November Nymex crude, look for buy stops to reside just above resistance at $92.50 and then at $93.00. Look for sell stops just below technical support at the overnight low of $91.44 and then at $91.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were higher in overnight trading, on short covering and perceived bargain hunting. The weaker U.S. dollar index is also supportive for the grains early today. All three grains are on the verge of technical breakdowns, should more selling pressure occur soon. Such would suggest a fresh leg down in prices. If the grains can rebound from present price levels then more serious chart damage would be avoided and traders would become more confident harvest lows are in place.