Dec Wheat - 3 to 5 Higher
Dec Corn - 3 to 4 Higher
Jan Beans - 2 Higher
Like last Wednesday, Dec Cotton closed lock limit down today (-3.00) at the price of 76.13. I would look to see if the buyers show up tomorrow below 75. I suspect they will - let's see what happens below 75 and between 75-74. Remember the weekly chart says the selloff has exhausted in the 75 area +/-2.
The soy complex reversed to the downside today with Dec Soymeal down 10.00 to 407.90 and Jan Beans were down 23.00 to 1381.50. In the beans you have strong support at the Oct 3rd low at 1362.25 (1356 in the November contract) - that area is solid long term support for a floor.
Dec Soymeal has good trendline support at 402.20, if it even needs to trade down that far.
Dec Corn has almost flatlined near the June 1st low of the 682 area. I would look for corn to continue to trade in the narrow range between 688 and 672, where it has stayed for the last 10 days or so.
Dec Wheat continues to build a floor in the 833 to 860 vicinity. The grains will need some kind of spark to wake them up. In the meantime, energy continues to build up for an extended move.
Dec Crude Oil Update: trading in a range between 82.60 and 86.00 the last few days - today closed in the top third - near the 84.70 level. Look for crude to eventually rally to the 96 area - Remember the upside down Head & Shoulders pattern. Here is today's chart in 4 hour bars.
The Dec S&P is also marking an upside down Head & Shoulders in the midst of the Elliot wave count. Friday's spike high began forming the right neckline at the price of 3813.25. Although price action has been very strong Friday and today, it seems more likely that the S&P will backfill at least some in this area - the high to the left (labeled H) is 3820 - so this area should provide resistance for tomorrow. What I'm not certain about, is whether it needs to sell all the way back down to the right shoulder or not. Check out the chart noting the H&S target of 4050 and the probable resistance level where the S&P is currently trading.
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