Jim's Morning Markets Report--May 30

May 30, 2013 01:58 AM
 

Thursday, May 30--Jim Wyckoff's Morning Web Log

* LATEST MARKET DEVELOPMENTS *

Many markets may react to Thursday’s batch of U.S. economic
data, highlighted by the weekly jobless claims report and
the second-quarter gross domestic product reading. The GDP
figure is expected to show annual growth of 2.4% in the
second quarter. The European stock markets traded narrowly
mixed Thursday, while Asian shares were sharply lower.
Japan’s Nikkei stock index lost 5% in value Thursday and has
lost nearly 15% in a week’s time. The sell-off in the Asian
stock markets did prompt some fresh safe-haven demand for
gold. The European Commission reported Thursday its main
economic sentiment index rose to 89.4 in May from 88.6 in
April. That news helped to steady the European stock
markets. Other U.S. economic data due for release Thursday
includes pending home sales and the weekly DOE liquid energy
stocks report.--Jim
   
U.S. STOCK INDEXES

S&P 500 futures: Prices are firmer early today. Bulls still
have the overall near-term technical advantage. The shorter-
term moving averages (4-, 9- and 18-day) are neutral early
today. The 4-day moving average is below the 9-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 this
week’s high of 1,672.30 and then at last week’s high of
1,685.50. Buy stops likely reside just above those levels.
Downside support for active traders today is located at the
overnight low of 1,641.30 and then at last week’s low of
1,632.70. 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. Bulls
have the overall near-term technical advantage. The shorter-
term moving averages (4- 9-and 18-day) are neutral early
today. The 4-day moving average is below the 9-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 3,025.00 and then at
this week’s high of 3,036.75. Buy stops likely reside just
above those levels. On the downside, short-term support is
seen at the overnight low of 2,981.75 and then at last
week’s low of 2,961.25. Sell stops are likely located just
below those levels. Wyckoff's Intra-Day Market Rating: 5.5.

Dow futures: Prices are higher early today. Bulls have the
overall near-term technical advantage. Buy stops likely
reside just above technical resistance at 15,400 and then at
15,450. Sell stops likely reside just below technical
support at 15,300 and then at 15,250. Shorter-term moving
averages are still bullish early today, as the 4-day moving
average is above the 9-day and 18-day. The 9-day moving
average is above the 18-day moving average. Shorter-term
oscillators (RSI, slow stochastics) are bearish early today.
Wyckoff's Intra-Day Market Rating: 5.5

U.S. TREASURY BONDS AND NOTES

September U.S. T-Bonds: Prices are lower early today. Bears
have the solid overall near-term technical advantage. Prices
are in a four-week-old downtrend on the daily bar chart.
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 the overnight high of 141 2/32 and
then at 141 10/32. Buy stops likely reside just above those
levels. Shorter-term technical support lies at 140 even and
then at 139 18/32. Sell stops likely reside just below those
levels. Wyckoff's Intra-Day Market Rating: 4.0
 
September U.S. T-Notes: Prices are lower early today. Bears
have the solid near-term technical advantage. Shorter-term
moving averages (4- 9- 18-day) are bearish early today. The
4-day moving average is below the 9-day and 18-day. The 9-
day is below the 18-day moving average. Oscillators (RSI,
slow stochastics) are neutral early today. Shorter-term
resistance lies at 129.16.0 and then at the overnight high
of 129.22.0. Buy stops likely reside just above those
levels. Shorter-term technical support lies at 129.03.5 and
then at 129.00.0. Sell stops likely reside just below those
levels. Wyckoff's Intra-Day Market Rating: 4.0

U.S. DOLLAR INDEX

The U.S. dollar index is weaker in early U.S. trading.
Profit taking is featured. Bulls still have the overall
near-term technical advantage, but are fading a bit as
trading is choppy. Slow stochastics for the dollar index are
bearish early today. The dollar index finds shorter-term
technical resistance at the overnight high of 83.735 and
then at 84.000. Shorter-term support is seen at the
overnight low of 83.265 and then at 83.000. Wyckoff's Intra
Day Market Rating: 4.5

NYMEX CRUDE OIL

Crude oil prices are lower early today as the bulls are
fading. In July Nymex crude, look for buy stops to reside
just above resistance at $93.00 and then at the overnight
high of $93.29. Look for sell stops just below technical
support at last week’s low of $92.21 and then at $92.00.
Wyckoff's Intra-Day Market Rating: 4.5

GRAINS

Markets were mostly weaker in overnight trading. More
profit taking is featured in corn and soybean futures
markets. Very wet U.S. Corn Belt weather that is causing
planting delays in both corn and soybeans is limiting the
downside for prices in those markets. The feature in the
grain markets will continue to be Corn Belt weather. Iowa
has just recorded its wettest spring on record. Wheat
futures bears remain in control. News that Japan has banned
the import of a certain type of U.S. wheat is a fresh
negative for the already bearish wheat futures market.
 

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