* LATEST MARKET DEVELOPMENTS *

In overnight news there was a mixed bag of economic data released by the European Union Tuesday. Most of it was downbeat, highlighted by the Euro zone seeing record high unemployment in November, at 11.8%. 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 upcoming weekend. U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, and consumer installment credit.–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 near steady 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 Monday’s low of 13,280 and then at 13,250. Buy stops likely reside just above technical resistance at Monday’s high of 13,325 and then at last week’s high of 13,370. 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 near steady early today on tepid short covering in a bear market. Prices last week hit a 3.5-month low. Bears still have near-term downside technical momentum. 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 Monday’s high of 145 4/32 and then at 145 19/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at Monday’s low of 144 12/32 and then at 144 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

March U.S. T-Notes: Prices are slightly higher early today on tepid covering after hitting a 2.5-month low last Friday. Bears still have downside momentum. 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 Monday’s high of 131.24.5 and then at 132.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at Monday’s low of 131.16.0 and then at 131.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

U.S. DOLLAR INDEX

The March U.S. dollar index is slightly higher in early U.S. trading. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at 80.50 and then at Monday’s high of 80.80. Shorter-term support is seen at the overnight low of 80.22 and then at 80.00. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Crude oil prices are slightly higher 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 the overnight low of $93.00 and then at Monday’s low of $92.42. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Markets were mostly weaker overnight. Traders are awaiting Friday’s monthly USDA supply and demand 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 remains bearish at present.