* LATEST MARKET DEVELOPMENTS *

In overnight news, world stock markets were a bit rattled by the surprisingly weak Google quarterly results, including an early release of the results that further unnerved traders and investors. Also, a two-day European Union leaders’ summit in Brussels has ended. The markets reacted little to fresh pronouncements coming out of the summit meeting that included efforts to shore up and better coordinate the EU banking sector. At a press conference, Spain’s prime minister said he has made no decision and would ask the EU for a bailout, if Spain needs it. Falling Spanish bond yields this week, amid good demand at their debt auctions, hint that Spanish officials may not be in a hurry to seek financial assistance from the EU. U.S. economic data due for release Friday includes existing home sales.–Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are weaker 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 to bearish early today. Today, shorter-term technical resistance comes in at Thursday’s high of 1,459.50 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 1,435.00 and then at 1,425.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 4.5

Nasdaq index futures: Prices are lower 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 average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is located at the overnight high of 2,737.50 and then at 2,750.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at this week’s low of 2,705.00 and then at 2,700.00. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

Dow futures: Sell stops likely reside just below technical support at 13,415 and then at 13,400. Buy stops likely reside just above technical resistance at 13,500 and then at 13,550. 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 to bullish early today. Wyckoff’s Intra-Day Market Rating: 4.5

U.S. TREASURY BONDS AND NOTES

December U.S. T-Bonds: Prices are firmer early today on short covering. Bears have gained fresh downside technical momentum this week. 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 147 even and then at 147 7/32. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 146 5/32 and then at 146 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are firmer on short covering. Bears still have some 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 to bullish early today. Shorter-term resistance lies at Thursday’s high of 132.09.5 and then at 132.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 131.29.0 and then at 131.23.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

U.S. DOLLAR INDEX

The December U.S. dollar index is firmer in early U.S. trading today, on more short covering. Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at 79.81 and then at this week’s high of 80.04. Shorter-term support is seen at the overnight low of 79.37 and then at Thursday’s low of 79.03. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Crude oil prices are slightly higher early today. Bulls and bears are on a level near-term technical playing field, amid choppy trading. In November Nymex crude, look for buy stops to reside just above resistance at this week’s high of $92.85 and then at the October high of $93.66. Look for sell stops just below technical support at the overnight low of $91.82 and then at $91.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

Markets were higher in overnight trading, on more short covering and bargain hunting. Bulls are regaining upside momentum. All three grains were on the verge of technical breakdowns, but have held above key chart levels. Higher closes in the grains today would see traders become more confident harvest lows are in place.