Chris Bersaw's  Instablog

Stocks tried to end the week with a strong finish but that wasn't the case as traders sold into strength sending the S&P500 to the lows but remained over 1315, now new support in a pre-memorial day session. If stocks can hold gains, next upside objective is 1345-1350 area. However Nasdaq 100 sold off still unable to advance beyond 2539 with downside support seen at 2496. 10yr Treasuries headed in the other direction trading back over 133-19 resistance putting new contract highs within reach again defying expectations of turning lower for another day. The Dollar remains over 82.50 again although it's looking a bit fatigued at these levels but so far buyers are still in control with 81.77 seen as near-term support. Gold floated higher on light buying managing to close over 1566 with 1600 next level as Silver continues to build on its gains after closing back over 28.000 with 29.000 next upside target. Crude continues to remain in neutral with another inside day as the market debates where to go from here with 92.00 next upside for buyers and sellers hope to get a close under 89.00 whereas profit-taking slowed down Natural gas closing under 2.700 but with buyers supporting at 2.573 keeping losses in check so have to see how committed buyers remain. It was separate ways in the grains with Corn initially selling off only to recover to close unchanged but with contract lows within reach whereas Wheat headed in the other direction supported at 660 but unable to close over the 200dma at 681 with Soybeans still bumping up against 1385 and an inside day in Soybean meal capped by 415 on the upside and 402.5 on the downside. Another inside day in Coffee with either buyers or sellers willing to make any major moves keeping prices confined in a five cent range 165.00 to 170.00 whereas Sugar hugs 19.60 not able to make any upside far from its nearest resistance at 20.15 suggesting more downside is possible. An outside day in Cocoa suggests another leg lower toward 2,050 with Orange juice able to stay over 108.00 but that's about all it was able to do and Cotton floats toward 76.00 its near-term upside target.

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

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