Chris Bersaw's  Instablog

Stocks continue to keep both buyers and sellers off balance by opening on the high only to sell off and sit on support almost the entire session threatening to make new lows only to recover in the final thirty minutes of trading ending back almost where they began the session but this time closing over resistance at 1315 in the S&P500 while Nasdaq 100 couldn't quite get the job done closing just under 2539.00 although tomorrow is another day. 10yr Treasuries reversed lower now under 133-17 and if this support becomes resistance could be a great sale as traders who purchased at this price will be looking to sell to get out if they get the chance with next downside objective is 133.00. The Dollar continues to build on gains with 84.00 next although it remains to be seen if it can get there. Gold tried but was unable to close over 1566 although managed a gain for the session, action looks more like short-covering and still looking lower over the near term. Silver fared better able to close over 28.07 resistance but with conviction lacking faces uphill struggle with resistance seen at 29.20. Inside day in Crude as sellers lose interest and buyers remain hesitant with an near term objective of 92.54 whereas short-covering continues to fuel Natural gas's upside but that will only last so long before more new buying is needed to continue gains by challenging 2.800 with support seen at 2.621. Corn got clobbered dropping more then 3% with further downside possible after another failure to trade over 610 with Wheat unable to make any upside although still sitting over support at 657. Soybeans tried to move higher but couldn't advance beyond 1383 whereas Meal did build on gains but stalled at 414.50 with more resistance seen at 420.00. Inside day in Coffee as the market figures out where to go, to 160.00 or back to 175.00 while Sugar ponders its direction as it consolidates with buyers showing little interest, Cocoa was marginally lower with 2,050 within reach for motivated sellers as buyers sit on the sidelines and Orange Juice found new signs of life as buyers supported challenging resistance at 108.30 to close at 109.30 if can build on these gains can see prices trade to 120.00. Cotton reversed direction with next upside hurdle seen at 76.35 as short covered with some light buying.

DISCLAIMER:

The risk of loss trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. Trading futures without protective stops or options is not recommended

Two sided trade in the S&P500 with buyers supporting when prices approached 1290 support which caused shorts to cover to end the session little changed, ditto for the Nasdaq 100 as buyers waited at 2500 to chase prices higher and if this trading action continues could be a sign of a pending oversold bounce especially if the indices can close over 1315 and 2540 respectively. 10yr treasuries closed off the best levels but still remain within reach of new contract highs supported at 133-16 with the Dollar closing over 82.000 and if can hold 82.09 can build on gains and target 84.00. Gold made another run at the Dec. lows but buyers were waiting again as prices closed well off the worse levels while falling short of 1570 for now it looks like downside might be limited from here whereas Silver held 27.000 keeping its upside target of 28.16 within reach. Crude slips again trading under 90.00 with buyers supporting the low which could be a sign of an impending bounce as prices approach support and Natural gas continues its upside ways as buyers supporting the low keeping 2.800 within reach. Buyers were waiting when Hogs traded 84.25 indicating a possible bottom if this level holds with near-term resistance seen at 86.85. Soybean meal bounced off 400.00 support checking losses with upside resistance seen at 420 while Soybeans continued lower heading for 1342 its near term target with resistance seen at 1403. Corn ended the session higher but unable to close over 608 still looking lower long term and Wheat fell back under its 200dma but should be supported around 660. More selling in the softs takes Coffee and Sugar to new contract lows with sellers finally having their way as buyers give up, Cocoa dropped again heading toward 2,050 where buyers had supported in the past although the outlook isn't encouraging. Orange Juice was turned away from 110.00 although buyers did support around 100.00 again so that could be something to watch and Cotton continues to plumb new contract lows likely heading for 60.00 unless someone decides to buy and one day will be a great buy but probably not today.

DISCLAIMER:

The risk of loss trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. Trading futures without protective stops or options is not recommended

Sure looks that way with several markets failing at previously mentioned levels with less then impressive buying interest on the rebound. S&P500 rallied right into but failed at 1324 falling back to the open with a similar performance with the Nasdaq 100 capped at 2556 only to reverse lower going into the close. 10yr Treasuries initially fell through 133-13 support only to recovery to close at that level which looks like there is more upside with Bonds testing support at 146-23 but getting a close over ending at 147-00.The Dollar flew off the 81.14 support level after it held on a couple of tests sending the greenback to session highs putting 82.00 within reach it once again. Gold sold off after being turned away from 1600 again trading back under 1573 albeit not by much but unless new buyers show up, prices now looking lower. Silver tried to advance but ran into problems approaching 29.000 again to head lower with more downside possible. Crude slipped again reversing yesterday's gains as sellers didn't wait for prices to reach 94.00 before getting back in on the short side with near term support seen at 89.22 whereas Natural gas managed a gain after holding 2.575 closing back over 2.610 with next target still 2.800. Profit-taking continues in Hogs failing to hold 86.50 so have to wait and see if the buyers support if prices trade closer to 84.000. Volatility continues in the grain with Corn the chosen one to drop over 5 percent blowing through near term support like it wasn't there, a hallmark of fund selling whereas Wheat wasn't immune to profit taking either although managed to hold its 200dma at 683 and Soybeans pulled back from 1420 trading down to 1380 again, last time they bounced higher, what about this time? Coffee tried to rally but this time turned away from 177.50 as it looks like sellers are starting to be more aggressive at these levels as buyers consider waiting for lower prices while Sugar fell under 20.00 after an unsuccessful upside attempt at 20.40 although prices did close off the worse levels. Cocoa broke 2,200 looking for token support at 2,150 after buyers gave up trying to push through formidable resistance and Orange Juice advances on likely short covering without much behind the move as buyers lost interest as prices approached 112.00. Limit down move in Cotton as prices failed at 78.00 giving speculators more reason to sell but buyers little reason to buy with the path of least resistance lower.

DISCLAIMER:

The risk of loss trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. Trading futures without protective stops or options is not recommended