Jim's Morning Markets Report--June 5

June 5, 2013 01:47 AM
 

Wednesday, June 5--Jim Wyckoff's Morning Web Log

* LATEST MARKET DEVELOPMENTS *

In overnight news, the Japanese stock market tumbled again
and the yen rallied against the U.S. dollar as the latest
Japanese government economic stimulus measure was not well
embraced by traders and investors. The Nikkei stock index is
now down by 18% since late May. The sell-off in Japan
equities spilled over into weakness in other Asian stock
markets Wednesday. Euro zone economic data released
Wednesday continued to show weakness, which put downside
pressure on the Euro currency. Retail sales fell by 0.5% in
April and were down 1.1% year-on-year. The Markit data
company reported its reading on manufacturing and service
sectors was 47.7 in May from 46.9 in April. Any reading
below 50.0 signals contraction. Traders and investors are
awaiting some major monthly economic news just around the
corner when the European Central Bank holds its monthly
meeting on Thursday, followed by Friday’s U.S. employment
report. U.S. economic data due for release Wednesday
includes the ADP national employment report, the weekly MBA
mortgage application survey, revised productivity and costs,
manufacturers’ shipments and inventories, the ISM non-
manufacturing report on business, the global services PMI
and the Fed’s beige book.--Jim
   
U.S. STOCK INDEXES

S&P 500 futures: Prices are weaker early today. Bulls still
have the overall near-term technical advantage but have
faded recently. The shorter-term moving averages (4-, 9- and
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. Short-term oscillators (RSI, slow
stochastics) are bearish early today. Today, shorter-term
technical resistance comes in at the overnight high of
1,632.00 and then at this week’s high of 1,645.30. Buy stops
likely reside just above those levels. Downside support for
active traders today is located at this week’s low of
1,621.20 and then at 1,610.00. Sell stops are likely located
just below those levels. Wyckoff's Intra-day Market Rating:
4.5

Nasdaq index futures: Prices are weaker early today. Bulls
have the overall near-term technical advantage but are
fading. The shorter-term moving averages (4- 9-and 18-day)
are bearish early today. The 4-day moving average is below
the 9-day and 18-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 2,977.75 and then at 3,000.00. Buy
stops likely reside just above those levels. On the
downside, short-term support is seen at this week’s low of
2,950.00 and then at 2,935.00. Sell stops are likely located
just below those levels. Wyckoff's Intra-Day Market Rating:
4.5.

Dow futures: Prices are weaker early today. Bulls still have
the overall near-term technical advantage, but have faded.
Buy stops likely reside just above technical resistance at
15,200 and then at 15,250. Sell stops likely reside just
below technical support at 15,100 and then at this week’s
low of 15,095. Shorter-term moving averages are neutral
early today, as the 4-day moving average is below 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: 4.5

U.S. TREASURY BONDS AND NOTES

September U.S. T-Bonds: Prices are firmer early today on
short covering in a bear market. Bears still have the
overall near-term technical advantage as prices hover near
the recent contract low. 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
Tuesday’s high of 140 23/32 and then at 141 even. Buy stops
likely reside just above those levels. Shorter-term
technical support lies at 140 even and then at the overnight
low of 139 24/32. Sell stops likely reside just below those
levels. Wyckoff's Intra-Day Market Rating: 5.5
 
September U.S. T-Notes: Prices are firmer early today on
short covering in a bear market. Bears still have the 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 to bullish early today. Shorter-
term resistance lies at Tuesday’s high of 129.19.0 and then
at this week’s high of 129.30.0. Buy stops likely reside
just above those levels. Shorter-term technical support
lies at the overnight low of 129.06.0 and then at 129.00.0.
Sell stops likely reside just below those levels. Wyckoff's
Intra-Day Market Rating: 5.5

U.S. DOLLAR INDEX

The U.S. dollar index is near steady in early U.S. trading.
Bulls have faded recently. Slow stochastics for the dollar
index are neutral early today. The dollar index finds
shorter-term technical resistance at Tuesday’s high of
83.000 and then at 83.250. Shorter-term support is seen at
the overnight low of 82.605 and then at this week’s low of
82.455. Wyckoff's Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Crude oil prices are firmer early today. Bulls and bears are
on a level near-term technical playing field. In July Nymex
crude, look for buy stops to reside just above resistance at
this week’s high of $94.41 and then at $95.00. Look for sell
stops just below technical support at the overnight low of
$93.10 and then at $93.00. Wyckoff's Intra-Day Market
Rating: 5.5

GRAINS

Markets were steady to firmer in overnight trading. Soybean
bulls have good upside near-term technical momentum. Corn
trading remains choppy, but with stiff overhead chart
resistance holding firm. Wheat futures prices are somewhat
following corn and beans, but the wheat bears remain in
technical control. Rains in the U.S. Corn Belt this week,
including more in the forecast, remain a major bullish
factor for the corn and soybean markets, although most of
the bullish impact as now been factored into market prices
Given the rocky start to the U.S. planting and growing
season, it would not surprise me to see the adverse weather
situation continue as the weather could move from cool and
wet in June to hot and dry in July.
 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close