wmeubank@ocp.kcmo.com
GREENWICH NATWEST FUTURES
DAILY TECHNICAL RESEARCH
IOM DECEMBER S&P 500 INDEX: Short-term trend neutral, long-term trend up.
Moving Averages–Positive–5-day 960.39, 20-day 949.94; positive–4-day 962.18, 9-day 959.00, 18-day 950.77; 50-day 946.56.
Oscillators–RSI 63%, stochastic 66/54, MACD 6.23/4.85.
Resistance–972.00-972.20 *** key daily resistance. Support–956.75-956.95 * key daily support.
Technical Indicators–The market remains short-term overbought and susceptible to a minor downside correction. Bearish divergence between price and longer-term monthly momentum indicators. Daily momentum remains up today above the 956.95 area.
Viewpoint–From a short-term perspective, the market looks technically pretty strong. Price has recently declined into its 50-day moving average, held, and has rallied $25.00 away from it. Daily momentum is currently up (bullish), and will remain so as long as the 956.95 area loosely contains price on the downside during the session today. We would view a test of this support as a potential new daily market buying opportunity.
CBOT DECEMBER TREASURY BONDS: Short-term trend up, long-term trend up.
Moving Averages–Positive–5-day 115.30, 20-day 114.23; positive,197>4-day 115.31, 9-day 115.28, 18-day 114.30; 50-day 114.01.
Oscillators–RSI 68%, stochastic 62/45, MACD 0.74/0.61.
Support–115.20-115.23 * key daily support.
Technical Indicators–Open interest expanded sharply on Wednesday's move higher (bullish). The market remains short-term overbought and susceptible to a minor downside correction. Daily market momentum has now turned up (bullish) once again.
Viewpoint–After a minor downside correction after testing important resistance at the 116.15-116.20 area, the major uptrend on the daily chart now appears ready to resume. Our short- term outlook is bullish above 115.04 support, and we would view a break into minor support at the 115.23 area today as a potential new daily to intraweek buying opportunity. Open interest has been quite bullish over the last 2-3 weeks, expanding on rallies and contracting on sell offs.
October 3, 1997John J. Kosar
Greenwich Natwest Futures, Inc.
311 S. Wacker, Chicago, Illinois
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