It has been a long time since the market had a true classic trend day down. A donwside breakout from a 3 week trading range has created some downside momentum. A typical weekly correction can lst 6 – 10 weeks in a bull market. There are still both buying and shorting opportunities along the way. Mondy should be a Buy Day after two days high to low but for a scalp only. Any morning rally or gap up will stipp be a shorting opportunity. The chart below shows the last hour low marked off (intial resistance) and better resistance at the point of the trading range. (line at top). To the downside, watch Globel low. There is daily “pocket” support between 1765 – 1780 (bottom of previous downtrending channel).
Bonds – sell short day but scalp only. Levels to downside, 132’24, then 132’18. Tuesday is the start of FOMC which concludes Wednesday. There is no press conference this time around.
Crude and Cows: Pinball buys. Sugar, good breakout mode . 1267.5 was the upside breaout pivot for gold to now hold. Nat Gas…well, all I can say is Chicago is expected to have a near record stint of sub zero temperatures. Stay warm, stay safe trading.