Jim Wyckoff’s Morning Blog – Thursday – 10/28/10
Thursday, October 28th, 2010Thursday, October 28-Jim Wyckoff’s Morning Web Log
JIM’S MARKET THOUGHT OF THE DAY *
The U.S. dollar is under pressure against the other
major currencies this morning, and the commodity
futures markets are responding with price gains.
Traders need to continue to closely monitor the
U.S. dollar index, which is a basket of six major
currencies weighted against the greenback. The U.S.
dollar will continue to be a major driver of many
markets in the near term.–Jim
STOCK INDEXES
S&P 500 futures: The shorter-term moving averages
are bullish early today. The 4-
day moving average is above the 9-day. The 9-day is
above the 18-day moving average. Short-term
oscillators are neutral to
bearish early today. Today, shorter-term technical
resistance comes in at Wednesday’s high of 1,186.30
and then at this week’s high of 1,193.00. Buy stops
likely reside just above those levels. Downside
support for active traders today is located at
1,174.00 and then at Wednesday’s low of 1,167.80.
Sell stops are likely located just below those
levels. Wyckoff’s Intra-day Market Rating: 5.0
Nasdaq index futures: Prices hit a fresh 2.5-year
high overnight. The shorter-term moving averages
are bullish early today. The 4-
day moving average is above the 9-day. The 9-day
average is above the 18-day. Short-term oscillators
are neutral early today.
Shorter-term technical resistance is located at the
overnight high of 2,130.50 and then at 2,140.00.
Buy stops likely reside just above those levels. On
the downside, short-term support is seen at the
overnight low of 2,118.00 and then at Wednesdsay’s
low of 2,102.25. Sell stops are likely located just
below those levels. Wyckoff’s Intra-Day Market
Rating: 5.5
Dow futures: Sell stops likely reside just below
support at 11,050 and then more stops just below
support at 11,000. Buy stops likely reside just
above technical resistance at 11,100 and then at
11,135. Shorter-term moving averages are bullish
early today, as the 4-day moving average is above
the 9-day. The 9-day moving average is above the
18-day moving average. Shorter-term oscillators
are bearish early today.
Wyckoff’s Intra-Day Market Rating: 5.5
U.S. TREASURY BONDS AND NOTES
December U.S. T-Bonds: Shorter-term moving averages
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 are neutral
early today. Shorter-term resistance lies at 130
16/32 and then at 130 23/32. Buy stops likely
reside just above those levels. Shorter-term
technical support lies at the overnight low of 129
20/32 and then at 129 10/32. Sell stops likely
reside just below those levels. Wyckoff’s Intra-Day
Market Rating: 5.5
DECEMBER U.S. T-Bonds
135 19/32–lifetime high
135 4/32–Previous Month’s high
132 24/32–18-day moving average
131 19/32–9-day moving average
131 4/32–second pivot point resistance
131 2/32–4-day moving average
130 23/32–previous day’s high
130 13/32–first pivot point resistance
130 1/32–pivot point
129 23/32–previous day’s close
129 20/32–previous day’s low
129 10/32–first pivot point support
129 5/32–previous month’s low
129 4/32–100-day moving average
128 30/32–second pivot point support
112 –lifetime low
December U.S. T-Notes: Shorter-term oscillators
are neutral early today.
Buy stops likely reside just above shorter-term
technical resistance at the overnight high of
125.17.0 and then at Wednesday’s high of 125.24.5.
Shorter-term moving averages are bearish early
today. The 4-day moving average is below the 9-day.
The 9-day is below the 18-day moving average. Sell
stop orders are likely located just below support
at 125.10.0 and then at the overnight low of
125.01.5. Wyckoff’s Intra Day Market Rating: 5.5
DECEMBER U.S. T-Notes
127 22/32–lifetime high
126 22/32–18-day moving average
126 15/32–previous month’s high
126 13/32–9-day moving average
125 31/32–second pivot point resistance
125 29/32–4-day moving average
125 24/32–previous day’s high
125 17/32–first pivot point resistance
125 10/32–pivot point
125 3/32–previous day’s close
125 3/32–previous day’s low
124 28/32–first pivot point support
124 21/32–second pivot point support
123 19/32–100-day moving average
122 16/32–previous month’s low
111 9/32–lifetime low
U.S. DOLLAR INDEX
The December U.S. dollar index is lower in early
trading today. Bears still have the overall near-
term technical advantage. Slow stochastics for the
dollar index are bullish early today. The dollar
index finds shorter-term technical resistance at
the overnight high of 78.26 and then at Wednesday’s
high of 78.51. Shorter-term support is seen at
Wednesday’s low of 77.76 and then at 77.24.
Wyckoff’s Intra Day Market Rating: 4.0
CRUDE OIL
Crude oil prices are near steady early today.
Trading has been choppy recently. In December
crude, look for buy stops to reside just above
resistance at $82.50 and then at $83.00. Look for
sell stops just below technical support at $81.45
and then at $81.00. Wyckoff’s Intra-Day Market
Rating: 5.0
GRAINS
Prices were higher in overnight trading. The key
“outside markets” are in a mostly bullish posture
for the grains early today, as the U.S. dollar
index is lower, while stock indexes are firmer.
Corn and soybean bulls still have solid upside
near-term technical momentum. Wheat futures bulls
have gained upside momentum this week.
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