Tuesday, April 10–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. Keener risk appetite
remains in the marketplace early this week.
The U.S.-China trade tensions have significantly eased
early this week. Trump administration officials said on
Sunday and Monday that trade sanctions against China are
not imminent and there is time to work out a solution to
the matter. China’s Premiere Xi Jinping said today he wants
a more open Chinese economy and pledged to do a better job
of protecting intellectual property.
News that the U.S. has sanctioned Russian oligarchs and the
metals firm United Co. Rusal has boosted aluminum, copper
and palladium prices early this week. Rusal is the world’s
second-largest aluminum producer.
The key “outside markets” on Tuesday morning see the U.S.
dollar index slightly lower. The greenback is seeing a
corrective pullback today after hitting a five-week high
last Friday. Meantime, Nymex crude oil prices are higher
and trading just above $64.00 a barrel. Crude is boosted by
the easing of U.S.-China trade tensions and by the missile
strikes against Syria this week.
U.S. economic data due for release Tuesday includes the
weekly Johnson Redbook and Goldman Sachs retail sales
reports, the NFIB small business index, the producer price
index, and monthly wholesale trade.
–Jim
U.S. STOCK INDEXES
June S&P 500 December e-mini futures: Prices are solidly
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 bullish early today.
Today, shorter-term technical resistance comes in at the
overnight high of 2,658.00 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
today’s low of 2,612.25 and then at last Friday’s low of
2,584.50. Sell stops are likely located just below those
levels. Wyckoff’s Intra-day Market Rating: 6.5
June Nasdaq index December futures: Prices are solidly
higher in early U.S. trading. 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
bullish early today. Shorter-term technical resistance is
seen at the overnight high of 6,524.75 and then at 6,554.50.
Buy stops likely reside just above those levels. On the
downside, short-term support is seen at 6,550.00 and then at
6,500.00. Sell stops are likely located just below those
levels. Wyckoff’s Intra-Day Market Rating: 6.5.
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 neutral to bearish early today.
Shorter-term technical resistance is seen at this week’s
high of 146 10/32 and then at 146 20/32. Buy stops likely
reside just above those levels. Shorter-term support lies at
this week’s low of 145 14/32 and then at 145 even. 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 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 last 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 slightly lower in early U.S.
trading. The shorter-term moving averages for the dollar
index are neutral early today, as the 4-day is even with the
9-day. The 9-day is above the 18-day moving average. Short-
term oscillators for the dollar index are neutral to bearish
early today. The dollar index finds shorter-term technical
resistance at Monday’s high of 89.980 and then at last
week’s high of 90.295. Shorter-term support is seen at
89.250 and then at 89.000. Wyckoff’s Intra Day Market
Rating: 5.0
NYMEX CRUDE OIL
May Nymex crude oil prices are higher in early U.S. trading.
Bulls have gained good upside momentum so far this week.
Look for buy stops to reside just above technical resistance
at $65.00 and then at $66.00. Look for sell stops just below
technical support at the overnight low of $63.20 and then at
$62.50. Wyckoff’s Intra-Day Market Rating: 6.0
GRAINS
Grain futures were mixed overnight. Worries about a full-
blown U.S.-China trade war have eased early this week, and
that’s bullish for grains. Traders will closely examine this
morning’s monthly USDA supply and demand report.