Dec Wheat - 1 to 2 Lower
Dec Corn - Steady
Nov Beans - Steady to 1 Lower
From yesterday's November Soybean comments:
"Soybeans also created a triple low point which is probably going to be very close to the final corrective low - if 1338 is tested, the buyers should defend this level."
The fund buyers indeed came out in force to buy up the 1340 to 1335 price range in beans today. A small triangle was formed yesterday in beans which functioned as a buy setup, which is highlighted with blue lines.
There is a pattern that I learned about called a fakeout/shakeout. In this case, it describes the sellers who showed up in November Soybeans on the open today.
You will see, price broke down from the triangle, then reversed back up higher as the fund buyers overwhelmed the shorts. The sellers were faked out that beans were going to keep selling off and mark another leg lower, then they were shaken out of the market with buy stops or freewill as their position became under water.
Some professional traders use this setup pattern to go long on a swing trade once price reverses back up through the bottom or top of the triangle. The fact that beans closed above the top of the triangle is a great sign that the correction is likely exhausted.
Check out the 1 hour November Bean chart highlighting the small triangle and price reversal V pattern higher.
We are looking at a blow up of the daily December Corn contract on the continuation chart. A small double bottom was marked on the USDA news yesterday. Not unlike soybeans, corn performed a selling fakeout, then reversed higher today. Here is the daily corn chart.
The sellers attempted to test the report day low overnight and again on the day session opening. Both attempts were unsuccessful as you can see on the 1 hour corn chart that shows more price detail.
I believe the most likely scenario moving forward is for corn, beans and wheat to begin significant up legs on the daily charts. The chart patterns as well as physical reality, point in this direction.
The S&P continuation chart just rolled to the December contract a few days ago and created a roll gap higher. At this point I am not convinced the S&P will correct down to test the A point.
This price action is more indicative of a steady, stable bull market. New highs for the move are not far away. Check out today's S&P chart.