Wow, it was like watching paint dry, to have the SF go through that 1014 3/4 level…Once it did however, we had a nice pop up to 1021 level…Now that trend line resistance should become trend line support.
I have found that the most basic of technical analysis is usually the best, and this was a perfect instance.
I must say, I was surprised that we didn’t trade more around that trend line, but the day still has an hour and a half left, so we will see.
Over all, the action today has been relatively quiet, except for the grains.
Of course we have had volatility in the metals and the Stock Indexes, but overall,today looks to be a digestive day after yesterday’s record performances in the metals, and one year highs and high settlements in the stock indexes.
As of this writing, the stock indexes as well as the metals are relatively quiet, with inside trading days in the making.
In the grains, the corn is the most quiet, basically unchanged. Both the Wheat and the Beans are nicely higher, as both now have broken through their long term bear trend lines of resistance and are currently trading above them.
Those trend lines remain, however, and should attract more trade as time goes on and more and more people eyeball them.
In the wheat, its more of a support level, now down at the 551-552 level. In the beans, it remains to be seen if 1014 3/4 will remain viable, or possibly it may be a target for the bears to shoot for by the end of the day.
In the corn, we are still looking at the 403 1/4 level as the trend line intersection for today.
As far as the outside markets, crude is higher on the day, but still below its resistance band from 80 to 82 dollars a barrel. Silver and Gold appear to be digesting yesterday’s all time record highs.
Watch those trend lines.
Good Trading