Sep Wheat - Steady to 1 Lower
Dec Corn - 1 to 2 Lower
Nov Beans - Steady
We are still looking at the intraday December Corn chart so you can see the bump area on the left which caused corn to backfill from the 540.75 high price today. 526.50, which was yesterday morning's swing high (labeled with S on chart) should provide buying support tonight and tomorrow.
I feel like this correction will be very short lived as yesterday's backfill was, less than a day in duration. December Corn marked almost a 40 cent range today. This was the biggest range day in any corn contract since last summer in July.
This large range tells us December Corn is heating up with volatility. Because the selloff from June 21st at 629.75 was fairly straight down, this rally should likewise be fairly straight back up with the pullbacks all completing in less than 1 day.
There is also an intraday gap at 620 which might cause a longer term (longer than 1 day) correction. We will have to judge this scenario when price rallies up closer to the gap.
The feel of the December Corn up move so far is that of a full blown weather/heat/dryness rally. Let's take it 1 day at a time, but 620 to 630 should be relatively quick. 575 would be the price of a 1.62X extension of leg 1 which was 45.5 cents long. Here's today's 2 hour December Corn chart.
November Soybeans rallied 16.50 cents today to close at 1394.50. This price is 4.50 cents above the neckline price at about 1390 - this should function as support for tomorrow's trading session.
Today's action also constitutes a breakout from the head & shoulders neckline. The odds should be better than 50% that we will have follow through buying this week. Check out today's November Bean daily chart.
Continuing our Elliot wave lesson in September Wheat -we marked a slightly lower low for the #2 point at 642.25 last night, then it rallied up to close at 669.25. The current up move should be the smaller # 3 wave (leg) within the larger #3 wave labeled at the top right of the chart.
I would think the recent 689 high will be tested or eclipsed this week some time. Here is today's 8 hour wheat chart with the small 1 and 2 points marked.
September S&P Update:
The equity markets are long and strong with the uptrend moving along and marking higher highs. The next objective price above is from 4808 (highs to the left) and 4827 (the measuring gap target). Check out the daily S&P chart.
August Crude Oil update:
Crude has rolled to the September contract and so far, 74.00 has held as buying support for the #2 correction point. The swing measure target for the next up leg (#3) is the 84.00 level.
The swing measure target is determined by taking the length of the first up leg, which is 10 bucks and tacking that number to the #2 low point at 74. See the next resistance level between 81.50 and 84.oo on the September Crude chart.
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