Chris Bersaw's  Instablog

Equities started the day on a strong note from short-covering inspired gains as support held resulting in outside days in both S&P500 and Nasdaq100 possibly setting the stage for more gains if ES can close over 1324 and 2557 for NQ however both are still within their respective downtrends. 10yr Treasuries pulled back just a little successfully testing 133-11 support which by itself is amazing given the gains in the indices with Bonds no where near its 146-16 support as sellers remain hesitant to aggressively sell even at these elevated levels. The Dollar reversed lower for the second session getting close to its first downside target 80.950 although it could drop to 80.400 before its said and done. Small gain in Gold as prices consolidate after recent short-covering with 1600 and 1615 upside resistance levels with support seen at 1576 and Silver pulled back a little but closed off the worse levels of the session not quite closing over 28.460. Mirror image in Crude from last session as prices reversed higher as buyers found value and shorts covered but prices need to close over 94.63 to really change the short-term direction and sellers finally caught up with Natural gas dropping prices more then 4 percent not unexpected given recent movement with support seen at 2.600 a challenge of will test buyer's resolve. Hogs pulled back on the first real bout of profit-taking with support seen at 86.60 offering a potential buy on a pull back opportunity if prices hold as near term upside objective remains 90.00. In the grains, Corn tried but unable to advance beyond 640 as prices reversed lower with 626 the price to watch if buyers support and Wheat was all over the place on an almost 6 percent intra-day move to end at 704 a six month high as buyers and sellers figure out where to take prices although buyers managed a close over 700 which has capped prices over the past several months with Soybeans turned away from 1420 looks more like profit-taking as sellers lack commitment at this time. Coffee was ground lower to 175.15 as prices just couldn't push over resistance at 181.00 again keeping prices contained within the almost two month long 11+ cent trading range whereas Sugar reversed lower unable to hold 20.50 with support still seen at 20.00. Cocoa melted a little turned away from 2,269 a level proving to be noteworthy resistance although looks like it could move higher if prices stay away from 2,200 while Orange Juice tried to advance but buyers lost interest at 110.00 with near term resistance at 113.20 and Cotton tries to hold over 76.00 attempting to advance at one point but turned away from 79.30 to end the session with a fractional loss.

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