wmeubank@ocp.kcmo.com
GREENWICH NATWEST FUTURES
DAILY TECHNICAL RESEARCH
IOM DECEMBER S&P 500 INDEX: Short-term trend down, long-term trend up.
Moving Averages–Positive–5-day 972.76, 20-day 968.12; positive/changing–4-day 971.78, 9-day 977.25, 18-day 968.64; 50-day 949.44.
Oscillators–RSI 41%, stochastic 26/38, MACD 6.87/8.27.
Resistance–980.50-982.00 ** key daily resistance. Support–945.50-945.70 *** key daily support.
Technical Indicators–Daily market momentum remains down (bearish) below the 980.50 area today. Declining daily oscillators warn of an intra-week move to the downside. Outside range day with a lower close yesterday.
Viewpoint–The market remains in the midst of a minor downside correction within the major daily uptrend. This correction will remain in force as long as price remains below 980.50-982.00 resistance today. The market is now coming into an important band of support at the 954.00- 949.40 level. If the major daily uptrend is still in force, this support should contain on the downside, and a new move higher should begin from it. However, longs are not advised below 945.50.
CBOT DECEMBER TREASURY BONDS: Short-term trend neutral, long-term trend up.
Moving Averages–Negative–5-day 115.17, 20-day 115.30; positive/changing–4-day 115.15, 9-day 116.03, 18-day 115.31; 50-day 114.07.
Oscillators–RSI 48%, stochastic 31/27, MACD 0.40/0.58.
Resistance–116.07-116.10 * key daily resistance. Support–114.04-114.07 * key daily support/major daily support.
Technical Indicators–Oversold stochastic oscillator warns of an impending move to the upside. Bearish divergence between price and daily and weekly indicators. Declining open interest on lower prices over the last five sessions.
Viewpoint–The market remains in the midst of a minor downside correction with the major daily uptrend. This correction will remain in force today as long as the 116.07 area loosely contains price on the upside during the session. The market is now close to a test of an important band of support that exists at the 114.20-114.04 level. This support combined with short-term oversold conditions now sets up an ideal technical environment for the major uptrend to resume.
October 17, 1997John J. Kosar
Greenwich Natwest Futures, Inc.
311 S. Wacker, Chicago, Illinois
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