KEY EVENTS TO WATCH FOR:

Monday, December 31, 2018  

10:30 AM ET. December Texas Manufacturing Outlook Survey

                       Business Activity (previous 17.6)

                       Mfg Production Idx (previous 8.4)

Tuesday, January 1, 2019   

  N/A               CANCELLED: U.S. imposes additional tariffs on Chinese products

  N/A               U.S: New Year's Day. Financial markets closed

Wednesday, January 2, 2019   

7:45 AM ET. The Retail Economist/Goldman Sachs Weekly Chain Store Sales Index

                       Chain Store Sales, W/W% (previous -0.1%)

                       Chain Store Sales, M/M% (previous +3.6%)

8:55 AM ET. Johnson Redbook Retail Sales Index

                       Ret Sales Mo-to-Date, M/M% (previous +0.1%)

                       Ret Sales Mo-to-Date, Y/Y% (previous +7.2%)

                       Latest Wk, Y/Y% (previous +7.8%)

9:45 AM ET. December US Manufacturing PMI

                       PMI, Mfg (previous 55.3)

11:00 AM ET. December Global Manufacturing PMI

                       PMI, Mfg (previous 52)

The STOCK INDEXES http://quotes.ino.com/ex changes/?c=indexes"  

The STOCK INDEXES:The March NASDAQ 100 was higher in late-overnight trading as is extends the rally off last-Wednesday's low. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 6534.69 are needed to confirm that a low has been posted. If March renews the decline off December's high, weekly support crossing at 5752.25 is the next downside target. First resistance is the 20-day moving average crossing at 6534.69. Second resistance is the 50-day moving average crossing at 6765.64. First support is last-Wednesday's low crossing at 5820.50. Second support is weekly support crossing at 5752.25.

The March S&P 500 was higher overnight as it extends the rally off last-Wednesday's low. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 2576.70 are needed to confirm that a short-term low has been posted.If March renews the decline off December's high, the 38% retracement level of the 2008-2018 rally on the monthly continuation chart crossing at 2076.04 is the next downside target. First resistance is the 20-day moving average crossing at 2576.70. Second resistance is the 50-day moving average crossing at 2665.15. First support is last-Wednesday's low crossing at 2317.70. Second support is the 38% retracement level of the 2008-2018 rally on the monthly continuation chart crossing at 2076.04.

INTEREST RATES http://quotes.ino.com/ex changes/?c=interest"

INTEREST RATES: March T-bonds was lower in late-overnight trading while extending the trading range of the past seven-days. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March resumes the rally off November's low, weekly resistance crossing at 146-23 is the next upside target. Closes below the 20-day moving average crossing at 143-20 would confirm that a short-term top has been posted. First resistance is last-Wednesday's high crossing at 146-03. Second resistance is weekly resistance crossing at 146-23. First support is the 10-day moving average crossing at 144-27. Second support is the 20-day moving average crossing at 143-20.    

March T-notes was lower in late-overnight trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, weekly resistance crossing at 122.089 is the next upside target. Closes below the 20-day moving average crossing at 120.237 would confirm that a short-term top has been posted. First resistance is last-Friday's high crossing at 121.260. Second resistance is weekly resistance crossing at 122.089. First support is the 10-day moving average crossing at 121.067. Second support is the 20-day moving average crossing at 120.237. 

ENERGY MARKETS? http://quotes.ino.com/ex?changes/?c=energy ""

February crude oil was higher overnight. The high-range overnight trade sets the stage for a steady to higher opening when the day session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 49.18 are needed to confirm that a short-term low has been posted. If February extends the decline off October's high, the January-2016 low crossing at 41.48 is the next downside target. First resistance is the 20-day moving average crossing at 49.18. Second resistance is the reaction high crossing at 53.50. First support is last-Monday's low crossing at 42.36. Second support is the January-2016 low crossing at 41.48.  

February heating oil was higher overnight. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 179.42 are needed to confirm that a low has been posted. If February extends the decline off October's high, the 87% retracement level of the 2017-2018-rally crossing at 162.34 is the next downside target. First resistance is the 20-day moving average crossing at 179.42. Second resistance is the reaction high crossing at 194.43. First support is last-Wednesday's low crossing at 163.80. Second support is the 87% retracement level of 2017-2018-rally crossing at 162.34.

February unleaded gas was higher overnight. Stochastics and the RSI have turned neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 138.37 are needed to confirm that a short-term low has been posted. If February extends the decline off October's high, the 2016 low crossing at 110.45 is the next downside target. First resistance is the 20-day moving average crossing at 138.37. Second resistance is the reaction high crossing at 151.77. First support is the 87% retracement level of the 2016-2018-rally crossing at 124.09. Second support is the 2016 low crossing at 110.45.

February Henry natural gas gapped down and was sharply lower overnight. The low-range overnight trade sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near-term. If February extends this month's decline, September's low crossing at 2.904 is the next downside target. Closes above last-Thursday's high crossing at 3.554 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 3.490. Second resistance is the 20-day moving average crossing at 3.837. First support is the overnight low crossing at 3.061. Second support is September's low crossing at 2.904.    

CURRENCIEShttp://quotes.ino.com/ex changes/?c=currencies"

CURRENCIES:The March Dollar was lower overnight. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, November's low crossing at 94.91 is the next downside target. If March renews this year's rally, weekly resistance crossing at 97.83 is the next upside target. First resistance is December's high crossing at 97.19. Second resistance is weekly resistance crossing at 97.83. First support is the reaction low crossing at 95.63. Second support is November's low crossing at 94.91.    

The March Euro was steady to slightly higher overnight. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above trading range resistance crossing at 116.45 are needed to confirm an upside breakout of the November-December-trading range. If March resumes the decline off September's high, November's low crossing at 113.53 then the 87% retracement level of the 2016-2018-rally crossing at 111.94 are the next downside targets. First resistance is the reaction high crossing at 116.45. Second resistance is the reaction high crossing at 117.00. First support is November's low crossing at 113.53. Second support is the 87% retracement level of the 2016-2018-rally crossing at 111.94. 

The March British Pound was higher overnight as it extends the rally off December's low. The high-range overnight trade sets the stage for a steady to higher opening when the day session beings trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December's low, the 50-day moving average crossing at 1.2874 is the next upside target. If March resumes this fall's decline, the October-2016 low crossing at 1.2384 is the next downside target. First resistance is the 50-day moving average crossing at 1.2874. Second resistance is the reaction high crossing at 1.2957. First support is December's low crossing at 1.2540. Second support is the October-2016 low crossing at 1.2384.  

The March Swiss Franc was steady to slightly lower overnight. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, the 50% retracement level of the September-November decline crossing at 1.0330 is the next upside target. Closes below last-Wednesday's low crossing at 1.0117 would confirm that a short-term top has been posted. First resistance is last-Friday's high crossing at 1.0288. Second resistance the 50% retracement level of the September-November decline crossing at 1.0330. First support is the reaction low crossing at 1.0097. Second support is November's low crossing at 1.0018.  

The March Canadian Dollar was steady to slightly higher overnight as it consolidates some of the decline off October's high. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off October's high, the 75% retracement level of the 2016-2017-rally crossing at 72.94 is the next downside target. Closes above the 20-day moving average crossing at 74.52 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 73.93. Second resistance is the 20-day crossing at 74.52. First support is last-Thursday's low crossing at 73.35. Second support is the 75% retracement level of the 2016-2017-rally crossing at 72.94.

The March Japanese Yen was higher overnight as it extends the rally off November's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, the 38% retracement level of the March-November-decline crossing at 0.0921 is the next upside target. Closes below the 20-day moving average crossing at 0.0898 are needed to confirm that a short-term top has been posted. First resistance is the overnight high crossing at 0.0915. Second resistance is the 38% retracement level of the March-November-decline crossing at 0.0921. First support is the 10-day moving average crossing at 0.0905. Second support is the 20-day moving average crossing at 0.0898.   

PRECIOUS METALS http://quotes.ino.com/ex changes/?c=metals"

PRECIOUS METALS: February gold was higher overnight as it extends the rally off November's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off November's low, the June-19-2018 high crossing at 1304.50 is the next upside target. Closes below the 20-day moving average crossing at 1255.90 would confirm that a short-term top has been posted. First resistance is the 50% retracement level of the April-August-Decline crossing at 1286.10. Second resistance is the June-19-2018 high crossing at 1304.50. First support is the 10-day moving average crossing at 1266.10. Second support is the 20-day moving average crossing at 1255.90.  

March silver was higher overnight as it extends the rally off November's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, the 38% retracement level of the 2017-2018-decline crossing at 15.733 is the next upside target. Closes below the 20-day moving average crossing at 14.814 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 15.575. Second resistance is the 38% retracement level of the 2017-2018-decline crossing at 15.733. First support the 10-day moving average crossing at 14.984. Second support is the 50-day moving average crossing at 14.814.  

March copper was steady to slightly lower overnight. The low-range trade sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. Closes above the 50-day moving average crossing at 274.44 are needed to confirm that a short-term low has been posted. If March resumes the decline off November's high, August's low crossing at 260.00 is the next downside target. First resistance is the reaction high crossing at 280.35. Second resistance is December's high crossing at 285.80. First support is last-Wednesday's low crossing at 264.20. Second support is August's low crossing at 260.00.

GRAINS http://quotes.ino.com/ex changes/?c=grains

March corn was steady to slightly higher overnight as it consolidates above the September-November uptrend line. The low-range overnight trade sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends this month's decline, November's low crossing at 3.67 1/4 is the next downside target. Closes above the 20-day moving average crossing at 3.81 are needed to confirm that a short-term low has been posted. First resistance is December's high crossing at 3.87 3/4. Second resistance is November's high crossing at 3.90. First support is last-Wednesday's low crossing at 3.72 1/2. Second support is November's low crossing at 3.67 1/4.  

March wheat was lower overnight as it extends this month's decline. The low-range overnight trade sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends this month's decline, November's low crossing at 5.03 1/4 is the next downside target. Closes above the 20-day moving average crossing at 5.21 1/4 would temper the near-term bearish outlook. First resistance is December's high crossing at 5.38 1/2. Second resistance is the 38% retracement level of the August-November-decline crossing at 5.50 1/2. First support is last-Thursday's low crossing at 5.07 1/4. Second support is November's low crossing at 5.03 1/4.       

March Kansas City Wheat closed up 1-cent at 4.96. 

March Kansas City wheat closed higher on Friday. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are becoming oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, the reaction low crossing at 4.90 is the next downside target. Closes above the 50-day moving average crossing at 5.10 3/4 would signal that If March renews the rally off November's low, November's high crossing at 5.33 3/4 is the next upside target. First resistance is December's high crossing at 5.24 1/2. Second resistance is November's high crossing at 5.33 3/4. First support is the reaction low crossing at 4.90. Second support is November's low crossing at 4.82 1/4.  

March Minneapolis wheat was lower overnight. The low-range overnight trade sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near-term. If March extends this month's decline, weekly support crossing at 5.23 3/4 is the next downside target. Closes above the 50-day moving average crossing at 5.76 3/4 are needed to confirm that a short-term low has been posted. If First resistance is the 10-day moving average crossing at 5.62 1/4. Second resistance is the 50-day moving average crossing at 5.76 3/4. First support is last-Thursday's low crossing at 5.44 1/2. Second support is weekly support crossing at 5.23 3/4. 

SOYBEAN COMPLEX? http://quotes.ino.com/ex?changes/?c=grains "

March soybeans were higher overnight as it consolidated some of this month's decline. The high-range overnight trade sets the stage for a steady to higher opening when the day session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 9.12 1/2 are needed to confirm that a short-term low has been posted. If March extends this month's decline, the reaction low crossing at 8.71 1/4 is the next downside target. First resistance is the 50% retracement level of the May-September-decline crossing at 9.46 1/2. Second resistance is the 62% retracement level of the May-September-decline crossing at 9.72 1/4. First support is the reaction low crossing at 8.71 1/4. Second support is October's low crossing at 8.58.  

March soybean meal was higher overnight. The high-range overnight trade sets the stage for a steady to higher opening when the day session begins trading. Stochastics and the RSI have turned neutral to bullish hinting that a low might be in or is near. Closes above the reaction high crossing at 316.90 are needed to confirm that a short-term low has been posted. If March extends the decline off December's high, November's low crossing at 305.30 is the next downside target. First resistance is December's high crossing at 321.70. Second resistance is October's high crossing at 327.40. First support is November's low crossing at 305.30. Second support is September's low crossing at 303.40. 

March soybean oil gapped up and was higher overnight as it consolidates some of this month's decline. The high-range overnight trade sets the stage for a steady to higher opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the aforementioned decline, November's low crossing at 27.42 is the next downside target. Closes above the 20-day moving average crossing at 28.58 are needed to confirm that a low has been posted. First resistance is the 20-day moving average crossing at 28.58. Second resistance is December's high crossing at 29.50. First support is last-Wednesday's low crossing at 27.58. Second support is November's low crossing at 27.42.  

LIVESTOCKhttp://quotes.ino.com/exchanges/?c=livestock 

February hogs closed up $0.08 at $60.65. 

February hogs closed slightly higher on Friday. The low-range close sets the stage for a steady to lower opening when Monday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If February extends the decline off November's high, November's low crossing at 59.25 is the next downside target. Closes above the 20-day moving average crossing at 64.23 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 61.90. Second resistance is the 20-day moving average crossing at 64.23. First support is Thursday's low crossing at 60.25. Second support is November's low crossing at 59.25.    

February cattle closed up $0.23 at 124.18. 

February cattle closed higher on Friday. The low-range close sets the stage for a steady to lower opening when Monday's night session begins trading. Stochastics and the RSI are diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off November's low, weekly resistance crossing at 127.95 is the next upside target. Closes below the 20-day moving average crossing at 122.230 would confirm that a short-term top has been posted. First resistance is Thursday's high crossing at 124.90. Second resistance is weekly resistance crossing at 127.95. First support is the 20-day moving average crossing at 122.23. Second support is the 50-day moving average crossing at 121.35.   

March Feeder cattle closed up $0.23 at $146.88. 

March Feeder cattle closed higher on Friday. The mid-range close sets the stage for a steady to higher opening when Monday's session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December's low, November's high crossing at 149.23. Closes below the 20-day moving average crossing at 144.27 would temper the near-term friendly outlook. First resistance is today's high crossing at 147.48. Second resistance is November's high crossing at 149.23. First support is the reaction low crossing at 142.72. Second support is December's low crossing at 140.35.  

FOOD & FIBERhttp://quotes.ino.com/ex changes/?c=food 

March coffee closed lower on Friday. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 10.33 would confirm that a short-term low has been posted. If March resumes the decline off October's high, weekly support crossing at 9.51 is the next downside target.           

March cocoa closed higher on Friday. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December's low, July's high crossing at 25.96 is the next upside target. Closes below the 20-day moving average crossing at 22.43 would confirm that a short-term top has been posted.     

March sugar closed higher on Friday. The high-range close set the stage for a steady to higher opening on Monday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off October's high, the reaction low crossing at 11.91 is the next downside target. Closes above the 50-day moving average crossing at 12.90 are needed to confirm that a low has been posted.     

March cotton closed slightly higher on Friday. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower possible near-term. If March extends this month's decline, the 75% retracement level of the 2016-2018-rally crossing at 74.04 is the next downside target. Closes above the 50-day moving average crossing at 78.43 are needed to confirm that a short-term low has been posted.