Tuesday, April 17–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk appetite is back in the marketplace early this week. Focus has turned from geopolitics to generally strong global corporate earnings reports.
In overnight news, China’s annual economic growth came in at 6.8% in the first quarter, which was slightly higher than expected and on pace with 2017’s gross domestic product growth rate.
The Group of Seven industrial nations (G-7) on Tuesday came out with a statement that supported the U.S.-led missile strikes on Syria and condemned the use of chemical weapons in warfare.
The key “outside markets” on Tuesday morning see the U.S. dollar index slightly higher. Nymex crude oil prices are also slightly higher and trading just above $66.00 a barrel.
U.S. economic data due for release Tuesday includes new residential construction, the weekly Johnson Redbook and Goldman Sachs retail sales reports, and industrial production and capacity utilization.
–Jim
U.S. STOCK INDEXES
June S&P 500 December e-mini futures: Prices are higher and hit a three-week high in early U.S. trading. 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 bullish early today. Today, shorter-term technical resistance comes in at 2,700.00 and then at 2,720.00. Buy stops likely reside just above those levels. Downside support for active traders today is located at the overnight low of 2,678.75 and then at Monday’s low of 2,660.75. 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 and hit a three-week high in early U.S. trading. 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 bullish early today. Shorter-term technical resistance is seen at 6,775.00 and then at 6,800.00. Buy stops likely reside just above those levels. On the downside, short-term support is seen at the overnight low of 6,698.50 and then at Monday’s low of 6,639.50. 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 weaker 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 and 18-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 145 18/32 and then at 146 even. Buy stops likely reside just above those levels. Shorter-term support lies at 145 even and then at Monday’s low of 144 21/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5
June U.S. T-Notes: Prices are lower in early U.S. trading. 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 bearish early today. Shorter-term resistance lies at the overnight high of 120.15.5 and then at 120.20.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at Monday’s low of 120.07.0 and then at 120.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5
U.S. DOLLAR INDEX
The June U.S. dollar index is slightly higher in early U.S. trading. The shorter-term moving averages for the dollar index are neutral early today, as the 4-day is below the 9-day and 18-day. The 9-day is even with the 18-day moving average. Short-term oscillators for the dollar index are neutral early today. The dollar index finds shorter-term technical resistance at Monday’s high of 89.555 and then at 90.000. Shorter-term support is seen at the overnight low of 88.945 and then at the March low of 88.530. Wyckoff’s Intra Day Market Rating: 5.5
NYMEX CRUDE OIL
May Nymex crude oil prices are slightly up in early U.S. trading. Bulls are still in firm near-term technical control. Look for buy stops to reside just above technical resistance at $67.00 and then at last week’s high of $67.76. Look for sell stops just below technical support at $66.00 and then at $65.50. Wyckoff’s Intra-Day Market Rating: 5.0
GRAINS
Grain futures were higher overnight, on corrective bounces from selling pressure seen Monday. Cold weather in the U.S. midwest is still bullish for the grains, as it is prompting planting delays for corn, and possibly will also for soybeans, and it’s also hurt the wheat crop.