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Commodity Currents: Topping Tuesday.

This time it might be the real deal, stocks continued their selling not looking back after failing at 1380 when buyers gave up with 1340 offering token support but a formal correction is 10% off the high which puts the SP500 south of 1278, time will tell ultimately if this is a buy the dip or sell the bounce however. 10yr treasuries closed over 131-16 with new buying taking prices within reach of the Jan highs 132-05 and can't rule out new contract highs especially if more selling in equities so for now it will be interesting to see who will buy at these levels. The Dollar didn't really benefit from the safe haven bid struggling to close over 80.14 but it does look like a small bull flag could be forming on the daily that projects to north of 81.00. Gold was bid with buyers flocking to the precious metal taking prices to 1660 while encouraging is just the beginning as more resistance looms with Sliver looking supported at 31.000 as the sellers who chased it lower were likely stopped out but 32.000 looms as significant upside resistance to overcome. Crude reversed direction at 103.00 resistance keeping alive its bearish tendencies this time support at 102.00 failed now new resistance with the next significant support at 97.56 with Natural gas heading lower after more short covering further frustrating shorts as new contract lows are probed with the path of least resistance lower for foreseeable future. Hogs were on the move as well getting close to 95.00 before reversing lower have to see if they can stay over 92.000 while Cattle heads toward 112 if 114 doesn't hold. More profit-taking in the grains with Corn dropping under 650 sitting on 634 with lower prices looking more likely as Wheat breaks under 630 with 610 the next level while the mighty Soybeans tried to move higher printing a new high not before selling emerged but remains over 1380 although if the rest of the grains continue to sell off, can expect that level to be tested. Coffee tried to rally but ran right into sellers waiting at 182.36 keeping buyers at bay while Sugar soured for longs falling through more support as it probes previous support 23.81 but 23.00 looks more likely and a key reversal in Cocoa kept buyers on the defensive as 2,050 looms with a break under this price could result in a trade to 2,000.