IOM DECEMBER S&P 500 INDEX: Short-term trend neutral, long-term trend neutral.

Moving Averages–Positive–5-day 977.12, 20-day 961.54; positive/changing–4-day 974.75, 9-day 977.18, 18-day 965.50; 50-day 955.07.

Oscillators–RSI 49%, stochastic 38/61, MACD 8.16/7.49.

Resistance–979.20-979.40 *key daily resistance. Support–945.00-945.20 **key daily support.

Technical Indicators–The market remains in the midst of a large, trendless congestion pattern. Declining daily oscillators warn of an intra-week move lower. Daily market momentum has now turned neutral, and is one more weak session away from turning down.

Viewpoint–This week's move lower appears likely to continue over the next 1-3 sessions. The market's trendless environment, combined with topping/declining daily momentum indicators and oscillators, sets up a good technical environment for this to occur. The 979.20 level should loosely contain price on the upside today, if the market is indeed headed lower on an intra- week basis. Upside penetration of 989.20 would be necessary to suggest that the major uptrend is resuming.

CBOT MARCH TREASURY BONDS: Short-term trend up, long-term trend up.

Moving Averages–Negative–5-day 118.17, 20-day 118.24; negative/changing–4-day 118.15, 9-day 118.26, 18-day 118.26; 50-day 117.10.

Oscillators–RSI 64%, stochastic 50/38, MACD 0.40/0.52.

Support–118.08-118.05 *key daily support.

Technical Indicators–Daily oscillators appear to be bottoming and turning upward (intra-week bullish?). Daily market momentum remains down, but is now in question due to yesterday's sharp move higher. Daily momentum indicators are beginning to turn up again.

Viewpoint–The market is still in the midst of a minor downside correction within the current major uptrend. However, yesterday's upside penetration of 119.24 suggests that the major uptrend is resuming. This has not yet been confirmed by daily momentum indicators. The daily NOB spread is now in an ideal technical environment for its major downtrend to resume here (which would be equally bullish for bonds).

December 12, 1997 John J. Kosar

Greenwich Natwest Futures, Inc.

300 S. Wacker, Chicago, Illinois

Technical Corner Index

ASPRAY'S GLOBAL TRADER
WORLD COMMODITY PERSPECTIVE
GREENWICH NATWEST FUTURES DAILY TECHNICAL RESEARCH
G.I.S., WINTREND SYSTEM
TECHNICAL DATA MARKET REVIEW
SIEGEL TECHNICAL MARKET UPDATE
THE WEEKLY RE-LAY
WESTFALIA INVESTMENTS TECHNICAL COMMENTS

Consensus National Futures and Financial On Line Index

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