MARCH BONDS: March bonds continue to probe new relative highs despite bearish signals from the daily studies, reaching 119-16 on December 3. The daily MACD histogram has dropped below its signal line, but stochastics have yet to cross bearishly. While this warns of potential weakness ahead of the December 5 employment data, a break below the October 20 trendline at 119-01 is required for technical confirmation. While we prefer to stand aside ahead of Friday's data, aggressive traders can look to sell a break below 118-26 with targets at 118-00. However, with the weekly and monthly charts decidedly bullish, we look to probe the long side against the September 8 trendline at 117-20.

MARCH EURODOLLARS: March Euros continue to trade in a narrow range this past week, but we maintain a bullish outlook. While the daily studies have yet to provide any clear signals, the weekly chart maintains a bullish bias. We look to buy against the August 8 trendline at 94.07, or a break above the October 28 trendline at 94.19. Target the October 31 high of 94.29 with stops below 94.00.

DECEMBER GOLD: December gold continues to establish new relative lows, reaching 289.0 on December 4, and currently trading at 289.9. While extremely oversold, the daily studies give no indication of letting up any time soon. While a short-term bounce may result in a test of the 20-day moving average at 304.0, we look to sell against the October 1 trendline at 310.0. Next support lies at 285.0.

JANUARY CRUDE OIL: January crude established new contract lows of 18.47 on December 3, currently trading at 18.70. However, we suspect that the November 14 sell-off is quite overdone, and look to probe the long side against the June 16 weekly lows of 18.35. Target the 20-day moving average at 19.90.

MARCH WHEAT: March wheat broke above the October 22 trendline on November 28, confirming buy signals from daily MACD and stochastics. With the contract pulling-back to test the top of the trendline at 356.0 as of this writing, new longs are recommended. A break above the 20-day moving average at 362.4 will provide confirmation of further strength to the November 4 high of 379.4. Stops below 349.4.

MARCH CORN: While no signals have been generated yet, the technical set-up for March corn anticipates a large move to the upside. Daily MACD and stochastics are turning up from oversold levels, and ADX is at the trend ready level of 10. We look to buy a break above the October 22 trendline at 284.6 with targets above 300.0. Stops below 279.0.

JANUARY SOYBEANS: While beans popped to 729.4 on November 28, they have since established new lows of 699.0, and we will maintain a bearish outlook below the November 11 trendline at 723.6. Both the daily MACD and stochastic oscillator continue to fall bearishly, and we look for another test of the October 30 gap of 687.0. However, keep in mind if this supports remains intact, be prepared to buy a break above 724.0.

DECEMBER YEN: December yen continues to establish new relative lows of 7735 on December 4, and we will not probe the long side until the contract is able to break above the November 3 trendline at 7810. However, even in the event of a bounce, the yen will find strong resistance at the 20-day moving average at 7939, then the long-term June 11 trendline at 8267. The currency has much work to do before shaking its bearish bias.

DECEMBER DEUTSCHEMARK: The D-mark remains under pressure, but note that the contract has been unable to establish new relative lows below the October 22 low of 5595. Therefore, with the daily studies turning higher from oversold territory, we look to go long on a break above the November 12 trendline at 5664. Target the 20-day moving average at 5754, then the 5800 level. Stops below 5595.

DECEMBER POUND: The pound broke above the November 12 trendline this week, a development that has only resulted in consolidation. While the daily studies provide no clear signals, the weekly chart is turning over bearishly, and we remain defensive on further strength against 16866. Sell strength and look for a break below The November 28 low of 16662 to establish a new pattern of lower highs and lows.

DECEMBER CANADIAN DOLLAR: The Canadian Dollar finally made a break above the October 8 trendline at 7044, confirming buy signals generated from daily MACD and stochastics. With the contract pulling back to test the top of the trendline at 7037 as of this writing, we recommend new longs against the November 28 low of 7014. Target the 20-day moving average at 7076.

DECEMBER S&P 500: December S&P's established new relative highs of 983.80 on December 4, continuing a pattern of higher highs and higher lows. This strength has pushed the daily MACD oscillator above the zero line, and we maintain a bullish bias above the October 28 trendline at 976.75. Target a break above the October 7 high of 992.25.

December 4, 1997 Roman I. Dutkewych

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