Now we have our answer to the nagging question - when are corn and beans going to have a larger degree correction?
Instead of starting the 11th wave higher in August Beans yesterday, 9 waves completed Big 1, and today should be the completion of the wave 2 (A-B-C) correction which began on Tuesday.
It's called an irregular flat, where the B wave rallies beyond the high of wave 9 of the impulse. A red arrow points to the termination of wave 9 and thus the completion of Big 1 UP. Notice how C sold down to test the low of A, where there was solid buying support today.
As long as this is not the end of the summer rally, we can project upper targets for the next leg higher. The first leg was 254 cents in length, so the next leg should be longer - between 1.23X and 1.38 X 254.
For August beans this gives us a target objective between 1705 and 1743. All of the numbers, letters and figuring is written on the chart. Spend some time wrapping your head around this. You can extrapolate/estimate for the September and November contracts of soybeans.
The gap was not closed in July Corn. Therefore this gap should still be a measuring gap for all the corn contracts. This is today's December corn chart - today was an inside day, therefore it was energy building.
July Wheat was the strongest today, marking a small positive day/close - of course wheat marches to the beat of a different drummer.
It is difficult for me to reconcile the weekend weather because there is always the fear that a good precipitation episode would kill the rally. However, this up trend has power, so the most likely scenario is that the trend has more to go - the new fund longs will defend.
Here is a brief S&P update:
The futures have rolled over to the September contract. The break-a-way gap never got filled, so the breakout is confirmed. The triangle target is 4800 and the Elliot wave target on the weekly is 5700! Check it out.
Crude Oil has rolled over to the August contract. The oil trade is still stuck in a sideways range between about 67 and 73. Here is the up to date 4 hour August Crude chart.
Comentarios