Good Morning traders!
Monday morning was spent consolidating Friday’s big move. The SPs tested the Electronic high that was still left hanging from Friday’s pit session. Indicators are severely overbought. This may just mean that the market needs more consolidation. The 5 SMA on the daily charts of indexes has served as a support line. The marketmay continue to consolidate until it meets this or tests below it. There is a well watched gap area that comes into play at 2002.25. The market may or may not get down to this level. Any morning flush should still find buyers underneath.
The EC is severely oversold. Both can easily consolidate another day as well. EC had 4 days high to low and there are 240 minute Buy Divergences. A Turtle Soup plus One BUY may unfold on the daily charts (close back above 125.06).
The fun in the financials has taken traders focus away from the meats. The hogs have a daily Buy Divergence. Cows may try another move towards contract highs.
Nat gas held its gap area while CRude pushed into the targeted zone from the day before. Crude can still trade another day lower. Copper is testing the daily 5 SMA.
All the grains have breakout mode – keep an open mind they can move in either direction.
Have a great day!
Markets in BO Mode: