Jim's Morning Markets Report--May 6

May 6, 2013 02:51 AM
 


* LATEST MARKET DEVELOPMENTS *

In overnight news, London was closed for a public holiday,
which made for quieter dealings in the foreign exchange
market. The European Union overall purchasing managers’
index declined in April, but by less than forecast by
economists. However, the German economy, the largest in the
EU, is showing weakness. The Markit composite PMI for the EU
came in at 46.9 in April from 46.5 in March. A reading below
50.0 shows contraction in business activity. Israeli missile
inside Syrian territory over the weekend have attracted the
attention of the market place. Any escalation in that
situation would likely prompt keener risk aversion in the
world market place. U.S. economic data due for release
Monday is light and includes the employment trends index.--
Jim

U.S. STOCK INDEXES

S&P 500 futures: Prices are near steady early today after
hitting a new all-time high on Friday. Bulls still have the
solid overall near-term technical advantage. 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
Friday’s record high of 1,614.20 and then at 1,625.00. Buy
stops likely reside just above those levels. Downside
support for active traders today is located at 1,600.00 and
then at Friday’s low of 1,589.70. 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 the solid overall near-term technical
advantage after prices hit a new 12-year high Friday. 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 to bullish
early today. Shorter-term technical resistance is located at
Friday’s high of 2,947.75 and then at 2,950.00. Buy stops
likely reside just above those levels. On the downside,
short-term support is seen at 2,925.00 and then at
Thursday’s low of 2,901.50. Sell stops are likely located
just below those levels. Wyckoff's Intra-Day Market Rating:
5.5.

Dow futures: Prices are near steady early today after
hitting a new record high on Friday. Bulls still have the
solid overall near-term technical advantage. Buy stops
likely reside just above technical resistance at Friday’s
high of 14,955 and then at 15,000. Sell stops likely reside
just below technical support at 14,850 and then at 14,800.
Shorter-term moving averages are 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 bullish
early today. Wyckoff's Intra-Day Market Rating: 5.5

U.S. TREASURY BONDS AND NOTES

June U.S. T-Bonds: Prices are near steady early today after
taking a beating on Friday and dropping to a fresh three-
week low. Bulls are now in near-term technical trouble.
Shorter-term moving averages (4- 9- 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. Oscillators
(RSI, slow stochastics) are bearish early today. Shorter-
term resistance lies at the overnight high of 147 8/32 and
then at 147 16/32. Buy stops likely reside just above those
levels. Shorter-term technical support lies at Friday’s low
of 146 27/32 and then at 146 16/32. Sell stops likely reside
just below those levels. Wyckoff's Intra-Day Market Rating:
4.5
 
June U.S. T-Notes: Prices are near steady early today.
Bulls are now fading after heavy losses suffered Friday.
Shorter-term moving averages (4- 9- 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. Oscillators
(RSI, slow stochastics) are bearish early today. Shorter-
term resistance lies at the overnight high of 132.30.0 and
then at 133.00.0. Buy stops likely reside just above those
levels. Shorter-term technical support lies at the
overnight low of 132.24.5 and then at 132.20.0. Sell stops
likely reside just below those levels. Wyckoff's Intra-Day
Market Rating: 4.5

U.S. DOLLAR INDEX

The U.S. dollar index is slightly higher in early U.S.
trading. Slow stochastics for the dollar index are bullish
early today. The dollar index finds shorter-term technical
resistance at the overnight high of 82.300 and then at
82.415. Shorter-term support is seen at the overnight low of
82.040 and then at Friday’s low of 81.835. Wyckoff's Intra
Day Market Rating: 5.5

NYMEX CRUDE OIL

Crude oil prices are slightly higher early today and did hit
a fresh four-week high overnight. Bulls have regained upside
momentum. In June Nymex crude, look for buy stops to reside
just above resistance at last week’s high of $96.04 and then
at $96.50. Look for sell stops just below technical support
at the overnight low of $95.56 and then at $95.00. Wyckoff's
Intra-Day Market Rating: 5.5

GRAINS

Markets were lower in overnight trading, led by corn. The
U.S. Corn Belt did not see the weekend expectations for
heavier rains in the region pan out, and the extended
forecast now calls for drier and warmer weather. Thus, it
appears a big chunk of the Corn Belt corn crop will get
planted in the coming days. That’s bearish for corn, and
corn is presently the leader in the grains complex.
Soybeans and wheat will follow the corn futures market
early this week. Traders will closely examine Monday
morning’s weekly USDA export inspections report.
 

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