Monday, April 9–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly higher overnight. U.S. stock indexes are also pointed toward higher openings when the New York day session begins.
The markets have not reacted significantly to reports of missile strikes on the Syrian military overnight, after weekend reports that the Syrian army has used poison gas on its civilians. Reports said the missile strikes came from Israeli jets.
The U.S.-China trade dispute simmered down a bit during the weekend. Trump administration officials said on Sunday that trade sanctions against China are not imminent and there is time to work out a solution to the matter.
The key “outside markets” on Monday morning see the U.S. dollar index higher. The greenback bulls have some momentum on their side. Meantime, Nymex crude oil prices are slightly higher and trading just above $62.00 a barrel.
U.S. economic data due for release Monday is light and includes the employment trends index.
–Jim
U.S. STOCK INDEXES
June S&P 500 December e-mini futures: Prices are higher in early U.S. trading. Trading remains choppy. 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 bullish early today. Today, shorter-term technical resistance comes in at 2,650.00 and then at last week’s high of 2,672.25. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 2,607.50 and then at Friday’s low of 2,584.50. Sell stops are likely located just below those levels. Wyckoff’s Intra-day Market Rating: 6.0
June Nasdaq index December futures: Prices are higher in early U.S. trading. Prices are still in a downtrend on the daily bar chart. 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 neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 6,527.25 and then at 6,550.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 6,460.00 and then at 6,408.50. Sell stops are likely located just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0.
U.S. TREASURY BONDS AND NOTES
June U.S. T-Bonds: Prices are lower in early U.S. trading. 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 technical resistance is seen at the overnight high of 146 1/32 and then at 146 16/32. Buy stops likely reside just above those levels. Shorter-term support lies at 145 even and then at last week’s low of 144 25/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0
June U.S. T-Notes: Prices are lower in early U.S. trading. 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 Friday’s high of 121.02.0 and then at 121.08.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 120.20.0 and then at last week’s low of 120.16.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0
U.S. DOLLAR INDEX
The June U.S. dollar index is firmer in early U.S. trading. Bulls have some momentum after hitting a five-week high last Friday. The shorter-term moving averages for the dollar index are bullish as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the dollar index are neutral to bullish early today. The dollar index finds shorter-term technical resistance at Friday’s high of 90.295 and then at the March high of 90.490. Shorter-term support is seen at 89.740 and then at last week’s low of 89.415. Wyckoff’s Intra Day Market Rating: 6.0
NYMEX CRUDE OIL
May Nymex crude oil prices are firmer in early U.S. trading. Look for buy stops to reside just above technical resistance at $63.00 and then at $64.12. Look for sell stops just below technical support at last week’s low of $61.81 and then at $61.00. Wyckoff’s Intra-Day Market Rating: 5.5
GRAINS
Grain futures were higher overnight, as worries about a full-blown U.S.-China trade war has eased a bit. Traders will closely examine this morning’s weekly USDA export inspections report.