KEY EVENTS TO WATCH FOR:

Monday, October 26, 2020  

8:30 AM ET. September CFNAI Chicago Fed National Activity Index

                       NAI (previous 0.79)

                       NAI, 3-mo Moving Avg (previous 3.05)

10:00 AM ET. September New Residential Sales

                       New Home Sales (previous 1.01M)

                       New Home Sales, M/M% (previous +4.8%)

                       New Home Sales Months Supply (previous 3.3)

10:30 AM ET. October Texas Manufacturing Outlook Survey

                       Business Activity (previous 13.6)

                       Mfg Production Idx (previous 22.3)

11:30 AM ET. Federal Reserve Board of Governors closed meeting

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

The Dow closed lower on Friday but pared early session losses on news that talks on another financial aid package were gaining very little traction in Congress, which raised investor fears that the plan would not be implemented before Election Day. The mid-range close sets the stage for a steady to slightly lower opening when Monday's night session begins trading. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices remain possible near-term. Closes below the 50-day moving average crossing at 28,020.51 would signal that a short-term top has been posted. If the Dow renews the rally off September's low, September's high crossing at 29,199.35 is the next upside target. First resistance is October's high crossing at 28,957.90. Second resistance is September's high crossing at 29,199.35. First support is the 50-day moving average crossing at 28,020.51. Second support is the 25% retracement level of the March-September-rally crossing at 26,464.30. 

The December NASDAQ 100 posted an inside day with a higher close 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 remain neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 50-day moving average crossing at 11,510.50 are needed to confirm that a short-term top has been posted. If December renews the rally off September's low, September's high crossing at 12,465.25 is the next upside target. First resistance is October's high crossing at 12,197.00. Second resistance is September's high crossing at 12,465.25. First support is the 50-day moving average crossing at 11,510.50. Second support is October's low crossing at 10,204.50.   

The December S&P 500 closed higher 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 neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 50-day moving average crossing at 3395.98 would confirm that a short-term top has been posted. If December renews the rally off September's low, September's high crossing at 3516.60 is the next upside target. First resistance is October's high crossing at 3498.10. Second resistance is September's high crossing at 3516.60. First support is the 50-day moving average crossing at 3395.98. Second support is the October 2^nd low crossing at 3304.70.  

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December T-bonds closed up 11/32's at 172-22.

December T-bonds higher due to short covering on Friday as it consolidates some of the decline off August's high. 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 oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December renews the decline off September's high, June's low crossing at 171-16 is the next downside target. Multiple closes above the 50-day moving average crossing at 174-20 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 174-01. Second resistance is the 20-day moving average crossing at 174-20. First support is today's low crossing at 171-22. Second support is the June 5^th low crossing at 171-16.

December T-notes closed up 15-pts. at 138.120.

December T-notes closed higher on Friday as it consolidates some of the decline off August's high. 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 oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off September's high, the 75% retracement level of the June-August-rally crossing at 137.286 is the next downside target. Closes above the 50-day moving average crossing at 139.070 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 138.263. Second resistance is the 20-day moving average crossing at 139.004. First support is Thursday's low crossing at 138.050. Second support is the 75% retracement level of the June-August-rally crossing at 137.286.           

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

December crude oil closed lower on Friday as rising oil exports from Libya and ongoing worries about energy demand pulled U.S. prices below the $40 mark.The low-range close sets the stage for a steady to lower opening when Monday's night session begins. Stochastics and the RSI have turned neutral to bearish signaling that sideways to higher prices are possible near-term. Closes below the October 12^th low crossing at $39.36 would confirm that a short-term top has been posted. Closes above the September 18^th high crossing at $42.02 would open the door for additional gains near-term. First resistance is the September 18^th high crossing at $39.36. Second resistance is August's high crossing at $44.33. First support is the October 12^th low crossing at $39.36. Second support is October's low crossing at $36.93.   

December heating oil closed lower on Friday. The low-range close sets the stage for a steady to lower opening when Monday's night trading session begins. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off October's high, October's low crossing at $113.59 is the next downside target. Closes above the October 9^th high crossing at $121.44 are needed to renew the rally off October's low. First resistance is the October 9^th high crossing at $121.44. Second resistance is the August 25th high crossing at $132.46. First support is Wednesday's low crossing at $130.06. Second support is October's low crossing at $108.19. 

December unleaded gas closed lower on Friday as it extends the September-October 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. If December extends the decline off October's high, October's low crossing at 107.78 is the next downside target. Closes above the 50-day moving average crossing at 115.72 would signal that a short-term low has been posted. First resistance is October's high crossing at 120.57. Second resistance is the 62% retracement level of the January-April-decline crossing at 125.98. First support is October's low crossing at 107.78. Second support is September's low crossing at 105.43.   

December Henry natural gas closed lower on Friday as it consolidated some of this consolidates some of this month's rally. 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 a double top with September's high might have been posted on Wednesday. Closes below the 50-day moving average crossing at 3.182 would confirm that a short-term top has been posted. If December extends the rally off October's low, monthly resistance marked by the January-2015 high crossing at 3.407 is the next upside target. First resistance is Wednesday's high crossing at 3.362. Second resistance is the January-2015 high crossing at 3.407. First support is the 50-day moving average crossing at 3.182. Second support is the October 14^th low crossing at 3.132. 

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

The December Dollar 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 oversold, diverging but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off September's high, September's low crossing at 91.75 is the next downside target. Closes above the 20-day moving average crossing at 93.50 would signal that a short-term low has been posted. First resistance is the 25% retracement level of the March-September-decline crossing at 94.72. Second resistance is the 38% retracement level of the March-September-decline crossing at 96.33. First support is Wednesday's low crossing at 92.46. Second support is September's low crossing at 91.75. 

The December Euro closed higher 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 becoming overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off September's low, the September 10^th high crossing at 119.42 is the next upside target. Closes below the 20-day moving average crossing at crossing at 117.82 would signal that a short-term top has been posted. First resistance is the September 10^th high crossing at 119.42. Second resistance is September's high crossing at 120.38. First support is last-Thursday's low crossing at 117.02. Second support is September's low crossing at 116.30. 

The December British Pound closed lower on Friday as it consolidated some of Wednesday's rally. 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 December extends the rally off September's low, the August 19^th high crossing at 1.3270 is the next upside target. Closes below the 20-day moving average crossing at 1.2964 would signal that a short-term top has been posted. First resistance is Wednesday's high crossing at 1.3182. Second resistance is the August 19^th high crossing at 1.3270. First support is the 20-day moving average crossing at 1.2964. Second support is September's low crossing at 1.2679.

The December Swiss Franc closed higher on Friday as it extends the rally off September'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, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off September's low, August's high crossing at 1.1138 is the next upside target. Closes below Monday's low crossing at 1.0927 would signal that a short-term top has been posted. First resistance is Wednesday's high crossing at 1.1090. Second resistance is August's high crossing at 1.1138. First support is October's low crossing at 1.0869. Second support is September's low crossing at 1.0781.

The December Canadian Dollar 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 becoming overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off September's low, September's high crossing at 76.97 is the next upside target. Closes below the 20-day moving average crossing at 75.66 would signal that a short-term top has been posted. First resistance is Wednesday's high crossing at 76.46. Second resistance is September's high crossing at 76.97. First support is last-Thursday's low crossing at 75.42. Second support is October's low crossing at 74.97.

The December Japanese Yen closed higher on Friday. 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 December extends this week's rally, September's high crossing at 0.0963 is the next upside target. Closes below Tuesday's low crossing at 0.0946 would confirm that a short-term top has been posted. First resistance is Wednesday's high crossing at 0.0959. Second resistance is September's high crossing at 0.0963. First support is October's low crossing at 0.0943. Second support is September's low crossing at 0.0940.  

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

December gold closed slightly 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 December renews the decline off August's high, the 38% retracement level of the March-August-rally crossing at $1771.40 is the next downside target. Closes above the 50-day moving average crossing at $1929.20 would confirm that a short-term low has been posted. First resistance is the 50-day moving average crossing at $1929.20. Second resistance is the September 16^th high crossing at  $1983.80. First support is the reaction low crossing at $1877.10. Second support is the September 24th low crossing at $1851.00.

December silver 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 neutral to bullish signaling that sideways to higher prices are possible near-term. If December renews the rally off September's low, the 50-day moving average crossing at 25.754 is the next upside target. Closes below October's low crossing at 22.965 would confirm that a short-term top has been posted. First resistance is the 50-day moving average crossing at 25.754. Second resistance is the September 15^th high crossing at 27.865. First support is October's low crossing at 22.965. Second support is September's low crossing at 21.810. 

December copper 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 but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off March's low, the 87% retracement level of the 2018-2020 decline crossing at 323.02 is the next upside target. Closes below the 50-day moving average crossing at 302.54 would signal that a short-term top has been posted. First resistance is Wednesday's high crossing at 321.80. Second resistance is the 87% retracement level of the 2018-2020 decline crossing at 323.02. First support is the 50-day moving average crossing at 302.54. Second support is October's low crossing at 283.45. 

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

December Corn closed up 3 3/4-cents at $4.20. 

December corn closed higher on Friday as it extends the rally off August's low. The high-range close sets the stage for a steady to higher opening when Monday's night sessions begins trading. Stochastics   and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off August's low, the July-2019 high crossing at $4.23 1/2 is the next upside target. Closes below the 20-day moving average crossing at $3.92 3/4 would confirm that a short-term top has been posted. First resistance is today's high crossing at $4.20. Second resistance is the July-2019 high crossing at $4.23 1/2 is the next upside target. First support is the 10-day moving average crossing at $4.04 1/2. Second support is the 20-day moving average crossing at $3.92 3/4.    

December wheat closed up $0.11 3/4-cents at $6.34 1/2.  

December wheat posted a key reversal up as it closed higher 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 overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off September's low, monthly resistance crossing at 6.66 1/4 is the next upside target. Closes below the 20-day moving average crossing at $5.98 1/2 would confirm that a short-term top has been posted. First resistance is Tuesday's high crossing at $6.38 1/4. Second resistance is monthly resistance crossing at $6.66 1/4. First support is the 10-day moving average crossing at $6.18. Second support is the 20-day moving average crossing at $5.98 1/2.       

December Kansas City Wheat closed up $0.10 3/4-cents at $5.71.

December Kansas City wheat closed sharply higher 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 overbought and are turning neutral to bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at $5.35 would confirm that a short-term top has been posted. If December resumes the rally off August's low, the 87% retracement level of the 2018-2020-decline crossing at $6.05 is the next upside target. First resistance is the 75% retracement level of the 2018-2020-decline crossing at $5.79 3/4. Second resistance is the 87% retracement level of the 2018-2020-decline crossing at $6.05. First support is the 10-day moving average crossing at $5.55. Second support is the 20-day moving average crossing at $5.35.      

December Minneapolis wheat closed up $0.03-cents at $5.77 1/2. 

December Minneapolis wheat closed higher on Friday. 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 overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends the rally off August's low, the 87% retracement level of the 2019-2020-decline crossing at $6.00 3/4 is the next upside target. Closes below the 20-day moving average crossing at crossing at $5.50 would signal that a short-term top has been posted. First resistance is 75% retracement level of the 2019-2020-decline crossing at $5.87 3/4. Second resistance is the 87% retracement level of the 2019-2020-decline crossing at $6.00 3/4. First support is the 10-day moving average crossing at crossing at $5.63 1/4. Second support is the 20-day moving average  crossing at $5.50.     

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

November soybeans closed up $0.13-cents at $10.86 3/4.

November soybeans closed higher on Friday as it extends the rally off August'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 November extends the aforementioned rally, psychological resistance crossing at $11.00 is the next upside target. Closes below the 20-day moving average crossing at $10.44 would confirm that a short-term top has been posted. First resistance is today's high crossing at $10.88 1/2. Second resistance is psychological resistance crossing at $11.00. First support is the 20-day moving average crossing at $10.44. Second support is the 50-day moving average crossing at $9.96 1/2.

December soybean meal closed up $4.40 to $386.80. 

December soybean meal closed higher on Friday as it extends the rally off August'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 December extends the rally off August's low, monthly resistance crossing at $404.90 is the next upside target. Closes below the 20-day moving average crossing at  $360.10 would confirm that a short-term top has been posted. First resistance is Thursday's high crossing at $390.80. Second resistance is monthly resistance crossing at $404.90. First support is the 10-day moving average crossing at $370.80. Second support is the the 20-day moving average crossing  at $360.10.       

December soybean oil closed up 46-pts. at 34.15. 

December soybean oil closed higher 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 neutral to bullish signaling that sideways to higher prices are possible near-term. If December renews the rally off October's low, September's high crossing at 35.49 is the next upside target. Closes below Monday's low crossing at 32.28 would signal that a short-term top has been posted. First resistance is last-Monday's high crossing at 34.46. Second resistance is September's high crossing at 35.49. First support is October's low crossing at 31.47. Second support is the 50% retracement level of the March-September-rally crossing at 30.68.      

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

December hogs closed up $0.98 at $67.18. 

December hogs closed higher on Friday as it consolidated some of this week's decline off October's high. 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 bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at $66.14 would signal that a short-term top has been posted. If December renews the rally off June's low, the July-2019 high crossing at $73.45 is the next upside target. First resistance is Monday's high crossing at $72.80. Second resistance is the July-2019 high crossing at $73.45. First support is the 20-day moving average crossing at $66.14. Second support is the 50-day moving average crossing at $61.86.     

December cattle closed up $0.33 at $103.80 

December cattle posted an inside day with a higher close on Friday. The mid-range close sets 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 December extends this month's decline, the 50% retracement level of the April-August-rally crossing at $101.55 is the next downside target. Closes above the 20-day moving average crossing at $109.81 would signal that a short-term low has been posted. First resistance is the 10-day moving average crossing at $107.33. Second resistance is the 20-day moving average crossing at $109.81. First support is Thursday's low crossing at $103.15. Second support is the 50% retracement level of the April-August-rally crossing at $101.55. 

November Feeder cattle closed down $0.68-cents at $129.75. 

November 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 oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If November extends the decline off September's high, the 75% retracement level of the April-August-rally crossing at $122.90 is the next downside target. Closes above the 20-day moving average crossing at $136.37 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at $133.17. Second resistance is the 20-day moving average crossing at $136.37. First support is the 62% retracement level of the April-August-rally crossing at $127.74. Second support is the 75% retracement level of the April-August-rally crossing at $122.90.      

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

December coffee posted an inside day with a lower close 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 prices are possible near-term. If December extends the decline off September's high, the 87% retracement level of the June-September rally crossing at 10.18 is the next downside target. Closes above the October 12th high crossing at 11.34 would confirm that a short-term low has been posted. 

December cocoa closed higher on Friday as it extends the rally off October's low. 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. If December extends this week's rally, the 50-day moving average crossing at 25.15 is the next upside target. If December renews the decline off September's high, July's low crossing at 21.15 is the next downside target.                    

March sugar posted an inside day with a lower close on Friday. The low-range close set the stage for a steady to lower 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 September's low, February's high crossing at 15.10 is the next upside target. Closes below the 20-day moving average crossing at 14.05 would signal that a short-term top has been posted.           

December cotton posted an inside day with a lower close on Friday as it consolidates some of the rally off April's low. The low-range close sets the stage for a steady to lower 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 December extends the rally off April's low, January's high crossing at 73.00 is the next upside target. Closes below the 20-day moving average crossing at 68.29 would confirm that a short-term top has been posted.