OVERNIGHT DEVELOPMENTS
World stock markets were mixed in lackluster overnight trading. Some disappointing corporate earnings reports limited the upside. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. A big miss to the downside in Snap earnings is helping to pressure U.S. equities.
Gold prices are modestly higher in pre-U.S. trading. Short covering and bargain hunting are featured. Outside markets are in a bullish posture for gold today as the U.S. dollar index is slightly weaker and crude oil prices are higher. Crude has made a good rebound this week, after scoring a 12.5-month low last week. This week’s rally suggests crude oil has put in a near-term market bottom.
The Bank of England holds its regular monetary policy
meeting Thursday. No change in policy is expected.
U.S. economic data due for release Thursday includes the
weekly jobless claims report and the producer price index.
–Jim
U.S. STOCK INDEXES
S&P 500 June e-mini futures: Prices are slightly lower in
early U.S. trading, on profit taking after hitting a
contract and record high on Monday. The bulls still have the
solid overall near-term technical advantage. There are no
early clues that a market top is close at hand. The shorter-
term moving averages (4-, 9- and 18-day) 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 (RSI, slow stochastics) are bearish early today.
Today, shorter-term technical resistance comes in at the
contract high of 2,403.75 and then at 2,415.00. Buy stops
likely reside just above those levels. Downside support for
active traders today is located at 2,375.00 and then at
2,360.00. Sell stops are likely located just below those
levels. Wyckoff’s Intra-day Market Rating: 4.5
Nasdaq index June futures: Prices are weaker in early U.S.
trading. Prices Tuesday hit a contract and record high.
Bulls have the solid overall near-term technical advantage.
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 bearish early today.
Shorter-term technical resistance is seen at overnight high
of 5,676.25 and then at the contract high of 5,687.75. Buy
stops likely reside just above those levels. On the
downside, short-term support is seen at 5,650.00 and then at
this week’s low of 5,634.50. Sell stops are likely located
just below those levels. Wyckoff’s Intra-Day Market Rating:
4.5.
U.S. TREASURY BONDS AND NOTES
June U.S. T-Bonds: Prices are higher on short covering after
hitting a five-week low on Wednesday. Prices are in a three-
week-old downtrend on the daily bar chart. 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 neutral to bullish early today.
Shorter-term technical resistance is seen at Wednesday’s
high of 151 14/32 and then at 152 even. Buy stops likely
reside just above those levels. Shorter-term support lies at
this week’s low of 150 13/32 and then at 150 even. Sell
stops likely reside just below those levels. Wyckoff’s
Intra-Day Market Rating: 5.5
June U.S. T-Notes: Prices are higher in early U.S. trading,
on short covering. 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
neutral to bullish early today. Shorter-term resistance
lies at Wednesday’s high of 125.05.5 and then at 125.10.0.
Buy stops likely reside just above those levels. Shorter-
term technical support lies at this week’s low of 124.24.0
and then at 124.20.0. Sell stops likely reside just below
those levels. Wyckoff’s Intra-Day Market Rating: 6.0
U.S. DOLLAR INDEX
The June U.S. dollar index is weaker in early U.S. trading.
Bears have the slight overall near-term technical advantage.
The shorter-term moving averages for the dollar index are
neutral early today as the 4-day is above the 9-day and 18-
day. The 9-day is below 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 this week’s high of 99.605 and then at
100.000. Shorter-term support is seen at Wednesday’s low of
98.250 and then at 98.960. Wyckoff’s Intra Day Market
Rating: 4.5
NYMEX CRUDE OIL
June Nymex crude oil prices are higher in early U.S.
trading, on more short covering. Bears still have the
overall near-term technical advantage. However, this week’s
rebound suggests a near-term market bottom is in place. Look
for buy stops to reside just above technical resistance at
$49.00 and then at $50.00. Look for sell stops just below
technical support at the overnight low of $47.34 and then at
$47.00. Wyckoff’s Intra-Day Market Rating: 6.0
GRAINS
Grain futures markets were mixed overnight. Traders are
awaiting this morning’s weekly USDA export sales report.
Trading has been choppy recently. Weather in the Corn Belt
is non-threatening at present, which is bearish. Grain
market bears still have the overall near-term technical
advantage.