KEY EVENTS TO WATCH FOR:

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 sharply lower in overnight trading as Asian markets reacting poorly to signs of economic weakness in China. Stochastics and the RSI are turning neutral to bearish hinting that the rebound off the late-December low might be staling out. Closes above the 20-day moving average crossing at 6490.04 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 6490.04. Second resistance is the 50-day moving average crossing at 6746.59. First support is December's low crossing at 5820.50. Second support is weekly support crossing at 5752.25.

The March S&P 500 was sharply overnight as it consolidates some of the rally off December's low due to concerns over signs of economic weakness in China.Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are still possible near-term. Closes above the 20-day moving average crossing at 2560.24 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 2560.24. Second resistance is the 50-day moving average crossing at 2658.98. First support is December'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 higher overnight as it extended 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, weekly resistance crossing at 147-03 is the next upside target. Closes below the 20-day moving average crossing at 143-31 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 146-23. Second resistance is weekly resistance crossing at 147-03. First support is the 10-day moving average crossing at 145-08. Second support is the 20-day moving average crossing at 143-31.    

March T-notes was higher overnight. 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 123.270 is the next upside target. Closes below the 20-day moving average crossing at 119.163 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 122.110. Second resistance is weekly resistance crossing at 123.270. First support is the 10-day moving average crossing at 121.126. Second support is the 20-day moving average crossing at 120.281. 

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

February crude oil 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 turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 48.74 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 48.74. 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 lower overnight. 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 October's high, the 87% retracement level of the 2017-2018-rally crossing at 162.34 is the next downside target. Closes above the 20-day moving average crossing at 178.28 are needed to confirm that a low has been posted. First resistance is the 20-day moving average crossing at 178.28. 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 lower overnight. Stochastics and the RSI are neutral signaling that sideways to lower prices are possible near-term. If February extends the decline off October's high, the 2016 low crossing at 110.45 is the next downside target. Closes above the 20-day moving average crossing at 137.45 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 137.45. 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 was higher overnight due to short covering as it consolidates some of Monday's huge decline. The mid-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 additional weakness is possible near-term. If February extends the decline off November's high, September's low crossing at 2.904 is the next downside target. Closes above Monday's gap crossing at 3.278 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 3.425. Second resistance is the 20-day moving average crossing at 3.903. First support is the overnight low crossing at 2.917. Second support is September's low crossing at 2.904.    

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

CURRENCIES:The March Dollar was higher overnight. 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 December's high, November's low crossing at 94.91 is the next downside target. Closes above the 20-day moving average crossing at 96.34 would confirm that a short-term low has been posted. If March renews this year's rally, weekly resistance crossing at 97.83 is the next upside target. First resistance is the reaction high crossing at 96.65. Second resistance is December's high crossing at 97.19. First support is the overnight low crossing at 95.37. Second support is November's low crossing at 94.91.    

The March Euro was lower overnight and is working on a possible key reversal down. 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 lower overnight as it consolidates some of the rally off December's low. The low-range overnight trade sets the stage for a steady to lower 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 1.2864 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 1.2864. 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 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 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 74.41 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 73.80. Second resistance is the 20-day crossing at 74.41. First support is Monday's low crossing at 73.30. 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 50% retracement level of the March-November-decline crossing at 0.0933 is the next upside target. Closes below the 20-day moving average crossing at 0.0900 are needed to confirm that a short-term top has been posted. First resistance is the 38% retracement level of the March-November-decline crossing at 0.0921. Second resistance is the 50% retracement level of the March-November-decline crossing at 0.0933. First support is the 10-day moving average crossing at 0.0908. Second support is the 20-day moving average crossing at 0.0900.   

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 1258.50 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 1269.90. Second support is the 20-day moving average crossing at 1258.50.  

March silver was steady to slightly lower overnight as it consolidates some of 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 14.869 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 15.580. 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 15.064. Second support is the 50-day moving average crossing at 14.869.  

March copper was lower overnight as it extends the decline off December's high. The low-range 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 the decline off December's high, August's low crossing at 260.00 is the next downside target. Closes above the 50-day moving average crossing at 274.00 are needed to confirm that a short-term low has been posted. First resistance is the reaction high crossing at 280.35. Second resistance is December's high crossing at 285.80. First support is the overnight low crossing at 261.15. Second support is August's low crossing at 260.00.

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

March corn was lower on Monday as it consolidates above the September-November uptrend line. The low-range close 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 the decline off December's high, 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 closed lower on Monday as it extended the decline off December's high. 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 the aforementioned decline, psychological support crossing at 5.00 is the next downside target. Closes above the 20-day moving average crossing at 5.21 would confirm that a short-term low has been posted. 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 Monday's low crossing at 5.02. Second support is psychological support crossing at 5.00.       

March Kansas City Wheat closed down 7 1/4-cent at 4.88 3/4. 

March Kansas City wheat closed lower on Monday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. 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 December's high, November's low crossing at 4.82 1/4 is the next downside target. Closes above the 50-day moving average crossing at 5.09 3/4 would confirm that a short-term low has been posted. 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 today's low crossing at 4.87 1/4. Second support is November's low crossing at 4.82 1/4.  

March Minneapolis wheat closed lower on Monday. The low-range close 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 the decline off December's high, 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. 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 closed lower on Monday. 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 are turning neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 9.12 are needed to confirm that a short-term low has been posted. If March extends the decline off December's high, 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 closed lower on Monday. The low-range close sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are 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 closed steady on Monday. 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 the decline off December's high, November's low crossing at 27.42 is the next downside target. Closes above the 20-day moving average crossing at 28.57 are needed to confirm that a low has been posted. First resistance is the 20-day moving average crossing at 28.57. 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 $0.33 at $60.98. 

February hogs closed slightly higher on Monday. The low-range close sets the stage for a steady to lower opening when Wednesday'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 63.90 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 61.55. Second resistance is the 20-day moving average crossing at 63.90. First support is last-Thursday's low crossing at 60.25. Second support is November's low crossing at 59.25.    

February cattle closed down $0.30 at 123.88. 

February cattle closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Wednesday'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 122.40 would confirm that a short-term top has been posted. First resistance is today's high crossing at 124.95. Second resistance is weekly resistance crossing at 127.95. First support is the 20-day moving average crossing at 122.40. Second support is the 50-day moving average crossing at 121.41.   

March Feeder cattle closed down $0.13 at $146.75. 

March Feeder cattle closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Wednesday'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 144.46 would temper the near-term friendly outlook. First resistance is today's high crossing at 147.58. 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 higher on Monday. The high-range close sets the stage for a steady to higher opening on Wednesday. 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 10.31 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 Monday. The high-range close sets the stage for a steady to higher opening on Wednesday. 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 22.55 would confirm that a short-term top has been posted.     

March sugar closed lower on Monday as it extended the decline off October's high. The low-range close set the stage for a steady to lower opening on Tuesday. 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 12.86 are needed to confirm that a low has been posted.     

March cotton closed slightly higher on Monday. The low-range close sets the stage for a steady to lower opening on Wednesday. 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 20-day moving average crossing at 78.28 are needed to confirm that a short-term low has been posted.