Tech Guy Weekend Comments for 10/16/22

Dec Wheat traded down on Friday but stayed above the 856 support that is the lower neckline. Here is the updated Dec Wheat chart.

Everything reversed course on Friday and corrected downward / sold off, including corn and beans, crude oil and the S&P.

Dec corn is making a series of higher lows in the last few days - 688.50 found the buyers on Friday and serves as support moving forward.

Nov Beans also made a series of higher lows from Tuesday to Friday last week - support here is 1377.

Heavy selling also hit the stock indices on Friday. A review on retracement levels - after a market marks a leg up it will correct back down a portion of the total up move - anywhere from 23% - 78% of the up leg. Popular Fibonacci levels are 38%, 50 % and 62%. The Dec S&P retraced almost exactly 62% on Friday.

The buyers will need to show up on Monday - at least to shore up the support at the 3590 to 3572 area. After that, will the S&P have another impulse up (3) or will it need to re-test the lows at 3502 again? Stay tuned. Look at the retracement level and 1-2-3-4-5 counts (if an up impulse has begun) on the S&P chart.

Nov Crude Oil Update: oil sold off to 85.20 on Friday, a little bit below the lower support line - this makes it a good test just like it did testing the resistance - going a bit past.

Even though B was lower than I thought and there was no extension up for B, we got our A-B-C correction (refer to the crude chart posted 10/13 - previous post). A next leg higher should be shortly forthcoming. Check out the updated crude chart here.