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Jim Wyckoff's Morning Report: Markets Narrowly Mixed Overnight

25 October 2013
Jim Wyckoff Commentary -  TheCropSite

GLOBAL - There were no major overnight developments to impact U.S. trading Friday. Asian stock markets were weaker on concerns of rising short-term interest rates in China.

Japan’s stock market sunk on worries that a stronger yen would crimp Japan’s exports. European stock markets were pressured on a report that business confidence in the leading European Union economy German declined in October for the first time in six months.

The Euro currency also backed down from a 23-month high on the negative German Ifo report. Other data from Europe showed U.K. GDP grew at the fastest rate in three years, at up 0.8% in the latest quarter.

It could be a quieter trading day in the U.S. Friday, as traders and investors are already looking ahead to next week, when the U.S. Federal Reserve’s Open Market Committee meets and key manufacturing data from China is also out.

Also, beginning in November the European Central Bank starts its stress tests on major financial institutions in the EU. U.S. economic data due for release Friday includes the advance durable goods report, the University of Michigan consumer sentiment survey, and wholesale trade inventories.--Jim

U.S. Dollar Index

The December U.S. dollar index is firmer early today on tepid short covering after hitting another contract low overnight.

Bears remain in strong overall near-term technical control. Slow stochastics for the dollar index are
neutral early today.

The dollar index finds shorter-term technical resistance at 79.440 and then at 79.550. Shorter-term support is seen at the overnight contract low of 79.060 and then at 79.000. Wyckoff's Intra Day Market Rating: 5.0

NYMEX Crude Oil

December Nymex crude oil prices are near steady early today and seeing mild short covering after hitting a nearly four-month low on Thursday.

Bears still have the solid overall near-term technical advantage. Prices are in a two-month-old
downtrend on the daily bar chart.

In December Nymex crude, look for buy stops to reside just above resistance at the overnight high of $97.65 and then at Wednesday’s high of $98.29.

Look for sell stops just below technical support at the overnight low of $96.99 and then at this week’s low of $95.95. Wyckoff's Intra-Day Market Rating: 5.0

Grains

Markets were narrowly mixed overnight. Harvest progress in the U.S. Corn Belt remains a seasonally bearish market factor for corn and soybeans.

Wheat remains supported by concerns about the Russian wheat crop and some problems in other wheat-producing regions of the world.

Technically, the corn bears are in firm command, soybean bulls have the near-term technical edge, and wheat bulls also have the near-term technical advantage.

TheCropSite News Desk

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