Stock Market Commentary For Monday Morning

The December NASDAQ 100 was lower overnight due to profit taking as it consolidates some of last Thursday's rally but remains above the 20-day moving average crossing at 1301.15. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. Closes above the October 14th reaction high crossing at 1499.00 are needed to confirm that a bottom has been posted. If December renews this fall's decline, the 87% retracement level of the 2002-2007-rally crossing at 979.90 is the next downside target. The December NASDAQ 100 was down 3.50 pts. at 1333.50 as of 5:52 AM CST. First resistance is last Friday's high crossing at 1361.25. Second resistance is the reaction high crossing at 1364.25. First support is the 20-day moving average crossing at 1301.15. Second support is the 10-day moving average crossing at 1276.45. Overnight action sets the stage for a lower opening by December NASDAQ 100 when the day session begins later this morning.

The December S&P 500 index was slightly higher overnight as it consolidates above the 20-day moving average crossing at 941.00. Last week's breakout above this resistance level signals that a larger-degree short covering rally into early-November appears to be unfolding. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. However, it will take closes above the October 14th reaction high crossing at 1066.50 to confirm that a bottom has been posted. If December renews this fall's decline, the March 2003 low crossing at 787.50 is the next downside target. First resistance is last Friday's high crossing at 984.00. Second resistance is the reaction high crossing at 992.20. First support is the 20-day moving average crossing at 941.00. Second support is the 10-day moving average crossing at 924.25. The December S&P 500 Index was up 2.70 pts. at 970.00 as of 5:58 AM CST. Overnight action sets the stage for a higher opening by the December S&P 500 index when the day session begins later this morning.

December crude oil was lower overnight as it consolidates below the 62% retracement level of the 2007-2008-rally crossing at 68.84. Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near. Closes above the 20-day moving average crossing at 72.96 are needed to confirm that a short-term low has been posted. If December renews this fall's decline, the 75% retracement level of the aforementioned rally crossing at 51.81 is the next downside target. First resistance is last Thursday's high crossing at 70.60. Second resistance is the 20-day moving average crossing at 72.96. First support is last Monday's low crossing at 61.30. Second support is the 75% retracement level crossing at 51.81.