KEY EVENTS TO WATCH FOR:

Monday, January 6, 2020 

9:45 AM ET. December US Services PMI

                       PMI, Services (previous 51.6)

11:00 AM ET. December Global Services PMI

                       PMI, Services (previous 51.6)

Tuesday, January 7, 2020 

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

                       Chain Store Sales, W/W% (previous +0.9%)

                       Chain Store Sales, M/M% (previous +4.4%)

8:30 AM ET. November U.S. International Trade in Goods & Services

                       Trade Balance (USD) (previous -47.20B)

                       Exports (USD) (previous 207.12B)

                       Exports, M/M% (previous -0.2%)

                       Imports (USD) (previous 254.32B)

                       Imports, M/M% (previous -1.7%)

8:55 AM ET. Johnson Redbook Retail Sales Index

                       Ret Sales Mo-to-Date, M/M% (previous -2.8%)

                       Ret Sales Mo-to-Date, Y/Y% (previous +5.9%)

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

10:00 AM ET. December ISM Non-Manufacturing Report on Business

                       Non-Mfg Composite Idx (previous 53.9)

                       Non-Mfg Business Idx (previous 51.6)

                       Prices Idx (previous 58.5)

                       Employment Idx (previous 55.5)

                       New Orders Idx (previous 57.1)

10:00 AM ET. November Manufacturers' Shipments, Inventories & Orders (M3)

                       Total Orders, M/M% (previous +0.3%)

                       Orders, Ex-Defense, M/M% (previous +0.0%)

                       Orders, Ex-Transport, M/M% (previous +0.2%)

                       Durable Goods, M/M% (previous +0.6%)

                       Durable Goods, M/M% (previous +0.5%)

4:30 PM ET. API Weekly Statistical Bulletin

                       Crude Stocks, Net Chg (Bbls) (previous -7.8M)

                       Gasoline Stocks, Net Chg (Bbls) (previous -0.8M)

                       Distillate Stocks, Net Chg (Bbls) (previous +2.8M)

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

The March NASDAQ 100 posted a new contract high on Friday before investors reacted to escalating tensions in the Middle East and a U.S. manufacturing activity index hit its lowest level since June 2009.The mid-range close sets the stage for a steady opening when Monday's night 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 last-year's rally, upside targets will be hard to project. Closes below the 20-day moving average crossing at 8623.63 would temper the near-term friendly outlook. First resistance is today's high crossing at 8907.25. Second resistance is unknown.First support is the 20-day moving average crossing at 8623.66. Second support is the 50-day moving average crossing at 8401.42.   

The March S&P 500 closed lower on Friday. However, a short covering rally in the afternoon session tempered early losses and the high-range close sets the stage for a steady to higher opening when Monday's night 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 last-year's rally into uncharted territory, upside targets will be hard to project. Closes below the 20-day moving average crossing at 3197.62 would confirm that a short-term top has been posted. First resistance is Thursday's high crossing at 3259.00. Second resistance is unknown. First support is the 20-day moving average crossing at 3197.62. Second support is the 50-day moving average crossing at 3132.15.  

The Dow closed lower on Friday but ease early session losses as investors digest Middle East tensions and weak U.S. factory data. The high-range close sets the stage for a steady to higher opening when Monday's night 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 the Dow extends last-year's rally into uncharted territory, upside targets will be hard to project.  Closes below the 20-day moving average crossing at 28,306.13 are needed to confirm that a short-term top has been posted. First resistance is Thursday's high crossing at 28,782.80. Second resistance is unknown. First support is the 20-day moving average crossing at 28,306.13. Second support is the 50-day moving averagecrossing at 27,879.82.  

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

March T-bonds closed up 1-22/32's at 158-09.

March T-bonds closed sharply higher on Friday confirming yesterday's key reversal up. Today's rally was triggered by a flight-to-safe haven move by investors after investors reacted to escalating tensions in the Middle East and a U.S. manufacturing activity index hitting its lowest level since June 2009. Today's close above the 50-day moving average crossing at 157-25 confirms that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. Stochastics and the RSI have turned neutral to bullish signaling that sideways to higher prices are possible near-term. If March renews the decline off December's high, November's low crossing at 155-00 is the next downside target. First resistance is the December 11^th high crossing at 159-02. Second resistance is December's high crossing at 160-12. First support is Thursday's low crossing at 155-05. Second support is November's low crossing at 155-00. 

March T-notes closed up 240 pts. At 129.120.

March T-notes closed sharply higher on Friday and above the 50-day moving average crossing at 129.023 confirming that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. Stochastics and the RSI have turned neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends today's rally, December's high crossing at 130.045 is the next upside target. If March resumes the decline off December's high, last-July's low crossing at 127.090 is the next downside target. First resistance is today's high crossing at 129.140. Second resistance is December's high crossing at 130.045. First support is December's low crossing at 127.290. Second support is July's low crossing at 127.090.       

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

February crude oil closed higher on Friday due to increase tensions in the Middle East. Profit taking ahead of the close tempered early session gains and the mid-range close sets the stage for a steady opening when Monday's night session begins. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off October's low, the 75% retracement level of the 2018 decline crossing at 65.62 is the next upside target. Closes below the 20-day moving average crossing at 60.39 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 64.09. Second resistance is the 75% retracement level of the 2018 decline crossing at 65.62.First support is the 20-day moving average crossing at 60.39. Second support is the 50-day moving average crossing at 58.14.  

February heating oil closed higher on Friday but well off session highs. The mid-range close sets the stage for a steady to lower opening when Monday's night trading session begins. Stochastics and the RSI have turned neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 199.65 are needed to confirm that a short-term top has been posted. If February extends the rally off November's low, last-May's high crossing at 214.32 is the next upside target.First resistance is today's high crossing at 210.00. Second resistance is last-May's high crossing at 214.32. First support is the 20-day moving average crossing at 199.65. Second support is the 50-day moving average crossing at 193.74.

February unleaded gas Closed higher on Friday as it extended the rally off October's low. The mid-range close sets the stage for a steady to higher opening when Monday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off December's low, the 75% retracement level of 2018's decline crossing at 188.45 is the next upside target. Closes below the 20-day moving average crossing at 168.86 would confirm that a short-term top has been posted. First resistance is today's high crossing at 178.24. Second resistance is the 75% retracement level of 2018's decline crossing at 188.45. First support is the 20-day moving average crossing at 168.86. Second support is the 50-day moving average crossing at 164.89.

February Henry natural gas closed slightly lower on Friday as it extended the decline off November's high. The mid-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, weekly support crossing at 2.029 is the next downside target. Closes above the 20-day moving average crossing at 2.257 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 2.257. Second resistance is the December 16^th high crossing at 2.351. First support is today's low crossing at 2.083. Second support is weekly support crossing at 2.029.         

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

The March Dollar closed higher due to short covering on Friday as it consolidated some of the decline off November's high. The mid-range close sets the stage for a steady to higher opening when Monday's night 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 96.85 would temper the near-term bearish outlook. If March extends the decline off December's high, the 62% retracement level of the March-September-rally crossing at 95.63 is the next downside target. First resistance is last-Monday's high crossing at 97.41. Second resistance is November's high crossing at 98.05. First support is the 62% retracement level of the March-September-rally crossing at 95.63. Second support is the 75% retracement level of the March-September-rally crossing at 94.96.

The March Euro closed lower on Friday. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. Stochastics and the RSI are turning neutral to bearish signaling a short-term top might be in or is near. Closes below the 50-day moving average crossing at 111.72 would temper the near-term friendly outlook. If March extends the rally off November's low, August's high crossing at 114.20 is the next upside target. First resistance is Tuesday's high crossing at 112.93. Second resistance is August's high crossing at 114.20. First support is the December 24^th low crossing at 111.30. Second support is November's low crossing at 110.61.

The March British Pound closed lower 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 turning neutral to bearish signaling that sideways to lower prices are possible near-term. If March resumes the decline off December's high, the November 22^nd low crossing at 1.2870 is the next downside target. If March extends the rally off December's low, December's high crossing at 1.3548 is the next upside target. First resistance is December's high crossing at 1.3548. Second resistance is the 62% retracement level of the April-September decline crossing at 1.3748. First support is the November 22^nd low crossing at 1.2870. Second support is November's low crossing at 1.2830.

The March Swiss Franc closed lower due to profit taking on Friday as it consolidates some of the rally off November's low.The mid-range close sets the stage for a steady to lower opening when Monday's night session begins trading. Stochastics and the RSI are overbought, diverging and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 1.0269 would confirm that a short-term top has been posted. If March extends the rally off November's low, the 87% retracement level of the March-September-rally crossing at 1.0461 is the next upside target.First resistance is Tuesday's high crossing at 1.0420. Second resistance isthe 87% retracement level of the March-September-rally crossing at 1.0461. First support is the 10-day moving average crossing at 1.0307. Second support is the 20-day moving average crossing at 1.0269.

The March Canadian Dollar closed lower on Friday as it consolidates some of the rally off November's low. 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 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 October 2018 high crossing at 78.84 is the next upside target. Closes below the 20-day moving average crossing at 76.18 are needed to confirm that a short-term top has been posted.First resistance is Tuesday's high crossing at 77.23. Second resistance is the October 2018 high crossing at 78.84. First support is the 10-day moving average crossing at 76.48. Second support is the 20-day moving average crossing at 76.18. 

The March Japanese Yen closed higher on Friday as it extends this week's rally above the 50-day moving average crossing at 0.0924 confirming that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening when Monday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the aforementioned rally, November's high crossing at 0.0934 is the next upside target. Closes below the 10-day moving average crossing at 0.0921 would temper the near-term friendly outlook. First resistance is November's high crossing at 0.0934. Second resistance is October's high crossing at 0.0948. First support is last-Friday's low crossing 0.0916. Second support is April's low crossing at 0.0913.  

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

February gold closed sharply higher on Friday due to a flight-to-safety by investors following Thursday's missile strike by the U.S. military that killed Qassem Soleimani, the head of Iran’s Islamic Revolutionary Guard’s Quds Force as it extends the rally off November's low. The high-range close sets the stage for a steady to higher opening when Monday's night 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 February extends the rally off November's low, September's high crossing at $1549.90 is the next upside target. Closes below the 20-day moving average crossing at $1493.30 would confirm that a short-term top has been posted. First resistance is today's high crossing at $1556.60. Second resistance is September's high crossing at $1549.90. First support is the 10-day morning crossing at $1511.10. Second support is the 20-day moving average at $1493.30.

March silver closed slightly lower on Friday. The low-range close set the stage for a steady to lower opening when Monday's night 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, October's high crossing at 18.495 is the next upside target. Closes below the 20-day moving average crossing at 17.335 would confirm that a short-term top has been posted. First resistance is today's high crossing at 18.325. Second resistance is October's high crossing at 18.495. First support is the 10-day moving average crossing at 17.756. Second support is the 20-day moving average crossing at 17.335.

March copper closed lower on Friday and below the 20-day moving average crossing at 279.53 confirming that a short-term top has been posted. 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 neutral to bearish signaling that a short-term top might be in or is near. If March extends today's decline, the 50-day moving average crossing at 271.99 is the next downside target. If March resumes the rally off September's low, the 75% retracement level of the April-September-decline crossing at 289.45 is the next upside target. First resistance is last-Thursday's high crossing at 285.65. Second resistance is the 75% retracement level of the April-September-decline crossing at 289.45. First support is the 50-day moving average crossing at 271.99. Second support is December's low crossing at 262.05. 

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

March Corn closed down $0.05 3/4-cents at 3.85 3/4. 

March corn closed lower on Friday as raising tension in the Middle East triggered some of today's sell off. it extends a three-week old trading range. Stochastics and the RSI are overbought and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. The low-range close sets the stage for a steady to lower opening when Monday's night sessions begins trading. Closes below the 20-day moving average crossing at $3.84 would temper the near-term friendly outlook. Closes above Monday's high crossing at $3.92 are needed confirm an upside breakout of the aforementioned trading range while opening the door for a possible test of November's high crossing at $4.00 in the near-future. First resistance is Monday's high crossing at $3.92. Second resistance is November's high crossing at $4.00. First support is the 20-day moving average crossing at $3.84. Second support is December's low crossing at $3.71.    

March wheat closed down $0.05-cents at $5.55 1/4.  

March wheat closed lower 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 overbought and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at $5.41 1/2 are needed to confirm that a short-term top has been posted. If March extends the rally off September's low, last-June's high crossing at $5.73 1/2 is the next upside target. First resistance is Thursday's high crossing at 5.67 1/2. Second resistance is June's high crossing at $5.73 1/2. First support is the 20-day moving average crossing at $5.41 1/2. Second support is the 50-day moving average crossing at $5.28 3/4.      

March Kansas City Wheat closed down $0.10 1/4-cents at $4.75.

March Kansas City wheat closed lower on Friday as it consolidates some of the rally off December's low. The low-range close sets the stage for a steady to lower opening when Monday night session begins trading. Stochastics and the RSI are overbought but are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at $4.57 1/2 would confirm that a short-term top has been posted. If March extends the rally off September's low, the 75% retracement level of the June-September-decline crossing at $5.08 is the next upside target. First resistance is Thursday's high crossing at $4.96 3/4. Second resistance is the 75% retracement level of the June-September-decline crossing at $5.08. First support is the 10-day moving average crossing at $4.71 3/4. Second support is the 20-day moving average crossing at $4.57 1/2.   

March Minneapolis wheat closed down $0.10 3/4-cents at $5.47 1/2. 

March Minneapolis wheat closed lower on Friday as it consolidates some of the rally off November's low. 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 overbought and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at $5.36 would confirm that a short-term top has been posted. If March extends the rally off November's low, October's high crossing at $5.71 1/4 is the next upside target. First resistance is the 87% retracement level of the October-December-decline crossing at $5.62 3/4. Second resistance is October's high crossing at $5.71 1/4. First support is today's low crossing at $5.46. Second support is the 20-day moving average crossing at 5.36.      

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

March soybeans closed down $0.15-cents at $9.41 1/4.

March soybeans closed sharply lower on Friday as it consolidated some of the rally off December's low. 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 overbought and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at $9.31 3/4 would confirm that a short-term top has been posted. If March extends the rally off this month's low, October's high crossing at $9.70 is the next upside target. First resistance is the 87% retracement level of the October-December-decline crossing at $9.58 1/2. Second resistance is October's high crossing at 9.70. First support is today's low crossing at $9.37 1/2. Second support is the 20-day moving average crossing at $9.31 3/4.    

March soybean meal closed down $4.20 at $301.40. 

March soybean meal closed lower on Friday while extending December's trading range. 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 neutral to bearish signaling that sideways to lower prices are possible near-term. Closes above the December 18^th high crossing at $307.90 are needed to renew the rally off December's low. If March renews last-Friday's decline, the December 12^th low crossing at $297.40 is the next downside target. First resistance is the December 18^th high crossing at $307.90. Second resistance is November's high crossing at $312.70. First support is the December 12th low crossing at $297.40. Second support is December's low crossing at $296.20.    

March soybean oil closed down 23-pts. at 35.01. 

March soybean oil closed lower on Friday. The mid-range close sets the stage for a steady to lower opening when Monday's night session begins trading. Stochastics and the RSI are overbought and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 33.55 would confirm that a short-term top has been posted. If March extends the rally off December's low, monthly resistance crossing at 35.79 is the next upside target. First resistance is Thursday's high crossing at 35.67. Second resistance is monthly resistance crossing at 35.79. First support is 10-day moving average crossing at 34.66. Second support is the 20-day moving average crossing at 33.55.        

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

February hogs closed down $3.00 at $68.55. 

February hogs closed limit down on Friday and closed below the 20-day moving average crossing at $69.66 confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening when Monday's night session begins trading. Stochastics and the RSI have turned neutral to bearish signaling that sideways to lower prices are possible near-term. If February extends today's decline, December's low crossing at $65.40 is the next downside target. If February resumes the rally off December's low, the 62% retracement level of the October-December-decline crossing at $74.10 is the next upside target. First resistance is the 50% retracement level of the October-December-decline crossing at $72.43. Second resistance is the 62% retracement level of the October-December-decline crossing at 74.10. First support is today's low crossing at $68.55. Second support is December's low crossing at $65.40.   

February cattle closed down $1.05 at $124.73. 

February cattle 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 bearish signaling that sideways to lower prices are possible near-term. Multiple closes below the 50-day moving average crossing at $124.87 would confirm that a short-term top has been posted. If February extended the rally off September's low, weekly resistance crossing at $130.45 is the next upside target. First resistance is December's high crossing at $127.90. Second resistance is weekly resistance crossing at $130.45. First support is the 50-day moving average crossing at $124.87. Second support is the reaction low crossing at $123.30.   

March Feeder cattle closed down $1.05-cents at $142.67. 

March Feeder cattle closed lower on Friday. The low-range close sets the stage for a steady to lower opening when Monday's session begins trading. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. Today's close below the 50-day moving average crossing at $143.57 confirms that a short-term top has been posted. If March extends this week's decline, December's low crossing at $140.55 is the next downside target. First resistance is December's high crossing at $146.93. Second resistance is November's high crossing at $147.40. First support is December's low crossing at $140.55. Second support is November's low crossing at $138.62.       

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 becoming oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March resumes the decline off December's high, the 50-day moving average crossing at 11.82 is the next downside target. Closes above Tuesday's high crossing at 13.46 would confirm that a low has been posted.

March cocoa 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 50-day moving average crossing at 25.43 are needed to confirm that a short-term low has been posted. If March renews the decline off November's high, the 62% retracement level of the August-November-rally crossing at 23.80 is the next downside target.       

March sugar posted an inside day with a higher close on Friday as it consolidated some of Thursday's decline. The mid-range close set the stage for a steady opening on Monday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. Thursday's close below 20-day moving average crossing at 13.39 confirmed that a top has been posted. If March extends  Thursday's decline, December's low crossing at 12.73 is the next downside target. If March renews the rally off October's low, the June high crossing at 13.78 is the next upside target.     

March cotton closed slightly lower on Friday. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but are neutral to bullish signaling that additional gains are possible near-term. If March extends the rally off August's low, the 50% retracement level of the 2018-2019-decline crossing at 70.91 is the next upside target. Closes below the 20-day moving average crossing at 67.46 are needed to confirm that a short-term top has been posted.