Happy Holidays!
Tomorrow we will resume trading as usual. Lets look at the overnight market last night.
Whoa! We are gonna have a lot of unhappy long come tomorrow morning if we do not recover from here.
The US market closed as follows:
The Dow closed down -214 points or -1.65% to close at 12,716
The S&P500 closed down -24 points or -1.71% to close at 1,359
The Nasdaq closed down -56 points or -1.83% to close at2,991The S&P500 closed down -24 points or -1.71% to close at 1,359
On Monday, we tested our first level of support on the ES (S&P Futures) of 74 and actually broke through it at 71 before recovering and hovered at the lower end of the range for most of the day and throughout Tuesday's per-market too.
But last night after cash market opened, we just sank. Not just a small drop, but went all the way to test our second level of support at 54. We actually made a low of 52.50 before recovering and trading at about 62 now. If you haven't read our weekly updates, you can click here.
It is interesting to see what will happen tonight. I will be on hand to follow it and update all of you accordingly before our market opens tomorrow.
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Now let me just touch a bit on the CME grains for all of you FCPO lovers out there. If you haven't read the weekly updates on these grains, you can click here.
Soybean Oil Futures: This contract tested our upper range resistance at 57.40 and actually touched a high of 57.45. It seems that these upper resistance remains a barrier for the grains to pull ahead, which means it will also limit our FCPO upward move some what. We are currently trading at 56.64 as of this post. We will follow it to see if prices will pull back and close back into the triangle and broadening wedge pattern.
Soybean Futures: This contract also tested the highs of the weekly range of 1450 and actually traded to a high of 1452.25 before pulling back now. The 1450 is represented as the yellow line in the chart in the weekly updates. We have these resistance ahead so I would be careful in the short term if I'm trying to long the FCPO until these other grains product also perform the same. Soybean is now trading at 1425.50 as of this post.
Wheat Futures: Ahah! Wheat is actually breaking down from the triangle pattern and is now going to test our lower flag and larger lower bottom triangle trendline at 608. Price is currently trading at 625. More bearish news factors for our FCPO.
Corn Futures: Corn also tested our lower resistance of 633. It actually made a low of 632 and is now trading at 635. Will we have a break down of the lower major triangle pattern trend line conclusively and also close below it for the week? If yes, then I would be very careful if I'm looking to buy the FCPO contracts.
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Okies, thats about it. Adios ladies and gentleman.
Catch up with ya'll tomorrow!
Best Wishes,
Tech Trader
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