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Commodity Currents: Waiting Wednesday.

Was yesterday's sell off in the indices the start of the much anticipated correction or just a pause in the never-ending up move that began in Dec? Have to wait as so far there is no follow through selling making yesterday's drop a one day wonder although more sellers are entering the market with today's advance on less volume suggesting short covering. The S&P500 needs to retake 1356.76 and 2618.29 for the Nasdaq 100 regain the upside but those lines weren't crossed as of this writing. 10 year Treasuries pulled back but still on the upper end of its range going nowhere fast but that can change with the key nonfarm payroll number released this Friday. The Dollar ran into resistance at 80.00 as this area is likely to prove to be stubborn resistance to exceed so need to watch to see if it can push higher. Crude bounced off 104.73 heading higher on increasing volume as it looks for 107.24 to jump into high gear. Natural gas headed in the other direction in a slow death melt down making this market ideal for options selling to capitalize on the still elevated implied volatility. While puts are overpriced relative to calls, for premium considerations can sell calls closer to the money with reduced risk of upside surprise. Gold held the 200day average from recent profit-taking for now looking higher but needs to reclaim 1,689.30 and challenge 1,700.0. Sliver put in a similar performance although would liked to have seen a test of 32.000 but buyers didn't wait before chasing it up over 33.372 while Copper headed higher with 3.8180 as near term resistance. Inside day in Hogs could set the stage for a bounce but has its work cut out for it with 88.20 first price to best. Profit-taking swept through the gains even with the previous unstoppable Soybeans giving back almost all yesterday's gains although over 1318 keeping its up channel intact. Different story in Wheat heading toward the Feb lows around 632 giving almost all of its gains since ending on its up trend line from the Dec lows. Corn didn't fare any better being on the defensive after failing at 660-00 taking out several support levels suggesting lower prices around 639-00. The softs spoiled with follow through selling in Coffee taking it one step closer to 180.00 while Sugar was dragged lower as well after 24.00 failed with next support will be 23.50 should 23.78 fail to hold. Cocoa was turned away from 2,325 for the second time increasing odds of more downside although buyers are supportive for now. Cotton tried to bounce but ran into sellers at 91.60 still on the defensive from yesterday's weak close keeping alive its downside tendencies.