DECEMBER BONDS: December bonds rallied off of the October 10 low of 114.17, currently trading at 116.04. While the daily chart maintains its pattern of lower highs and lower lows and our outlook is bearish, the contract is threatening the October 3 trendline at 116.14. Daily MACD remains bearish, but stochastics are on the verge of crossing bullishly, and a break above 116.14 would put an end to our bearish argument. Therefore, with the weekly and monthly studies holding on to their bullish bias, traders can look to go long on a break above 116.14, with initial targets at the October 6 and 7 lows between 116.28-31. Stop on a close below the 20-day moving average at 115.30.

MARCH EURODOLLARS: March Eurodollars remain well supported above the August 13 trendline at 94.04, trading at 94.09 as of this writing. While daily MACD and stochastics oscillators maintain a bearish bias, the daily chart holds its pattern of higher highs and higher lows. Therefore, new longs are recommended against 94.04, and a close above the 20-day moving average at 94.13 would confirm further strength to the October 8 highs of 94.20-26. Stop on a break below 94.00.

DECEMBER GOLD: December gold continues to come under pressure, stopping us out on our attempt to buy the dip off the October 1 high of 340.7. With the contract trading at 327.9 as of this writing, further weakness is likely this week. Daily MACD and stochastics have generated sell signals, and we look for support at the bottom of the September range at 321.0. However, with the weekly time-frame maintaining a bullish bias, look to buy a dip to 321.0, or a break above the October 1 trendline at 333.4. DECEMBER CRUDE OIL: December crude gave up all of its gains this week, stopping us out and turning the short-term technical picture bearish. The daily chart has established a new pattern of lower highs and lower lows following the October 3 high of 22.95, allowing for a new trendline coming in this week at 21.54. Daily MACD and stochastics continue to fall bearishly, and we look for further weakness to the September 5 and 25 highs between 20.00-15. DECEMBER WHEAT: December wheat maintains a bullish bias, establishing new relative highs of 374.0 on October 10, currently trading at 369.0. The daily studies remain bullish, and the structure maintains its pattern of higher highs and higher lows. Stay long or buy weakness against the 20-day moving average at 362.6, and look for a close above 373.0 to confirm further strength.

NOVEMBER SOYBEANS: November beans exceeded our 698.0 target, reaching 629.0 on October 13. However, with the contract consolidating above 700.0 support, we maintain a bullish outlook. Stay long but move up stops to 699.0, as a break here will see continuation to the October 10 daily gap at 685.0. This support will offer excellent location for new longs, as revised targets lie at 750.0.

DECEMBER YEN: December yen remains well-supported, currently trading at 8391. Both daily MACD and stochastics maintain a bullish bias, but the contract is setting up an excellent selling opportunity. The June 11 trendline comes in this week at 8480, and with the weekly outlook maintaining a bearish bias, new shorts are recommended here. However, keep stocks tight, as a break above 8480 will end the long-term bearish record.

DECEMBER DEUTSCHEMARK: The bull trend for the D-mark will remain intact as long as the August 6 trendline at 5682 is not taken out. However, we remain cautious at current levels, and will stand aside until the contract takes a rest. Daily oscillators have not confirmed recent strength, indicating a potential bearish divergence. While no confirmation has been provided, we remain defensive against the October 9 high of 5792.

DECEMBER POUND: We are starting to give up on our bullish bias for the pound as the contract has been unable to establish new highs above the October 9 high of 16266. Daily MACD and stochastics are on the verge of generating sell signals, and a break below the September 9 trendline at 16047 would provide technical confirmation of further weakness. Look to sell against the October 9 16266 high, or go short on a break below 16047. Initial targets lie at the October 3 low of 15940. Stop at new highs above 16266.

DECEMBER CANADIAN DOLLAR: The Canadian Dollar fell apart this week, crushing our bullish bias in the process. The contract has established new relative lows of 7222 as of this writing, and bearish daily studies anticipate further weakness. Sell against the October 8 trendline at 7253, and look for a test of the September 12 low of 7210, and possibly the contract low of 7200. However, monitor these supports carefully, and be prepared to reverse against 7200.

DECEMBER S&P 500: December S&P's maintain a bullish pattern of higher highs and higher lows, but the daily MACD and stochastics oscillators have generated sell signals, and the short-term bias is negative. A break of the 20-day average at 968.81 will confirm further weakness, and will allow an opportunity for new longs against the April 11 trendline at 946.65. Target a break above the October 7 high of 992.25.

October 16, 1997Roman I. Dutkewych
Technical Data
A Division of Thomson Financial Networks
22 Pittsburgh Street, Boston, Massachusetts

Consensus National Futures and Financial On Line Index
Technical Corner Index

FORTUCAST | THE WEEKLY RE- LAY
G.I.S. - TECHNICAL COMMENTS | GREENWICH NATWEST FUTURES
SIEGAL TECHNICAL MARKET UPDATE | TECHNICAL DATA MARKET REVIEW
WESTFALIA INVESTMENTS | THE WINDY CITY WORKSHEET

Added to the WWW 10-17-97
Last updated on 10-17-97

Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com

wmeubank@ocp.kcmo.com