Both the Russell and the DAX made new highs in the early AM session. Profit taking kicked in and drove the SPs back to the bottom of the prior range where good support came in. The outside range day in the ticks mirrored the big range in the SPs. The summation tick is slightly oversold. The Dow Jones Utility index caught a good bid, though and closed on its highs. It is putting together some upside momentum out of the Apex of a large triangle on the daily charts. The REAL relative strength leader has been the transports, in particular, the Nasdaq transportation index.
SP levels – nothing profound to comment on for Wednesday..they will probabl take their early AM cue from the DAX. The DAXhas a double top on the 240 minute time frame and sell divergences on the daily charts. Sell divergences are not a reliable pattern when all time frames are in uptrends. Still, the DAX may need to continue to fill out range here from its recent mark up. See the chart below.
Bonds and Tens made lows first but tens did not confirm the bonds push to a hgiher high on the daily charts. Main pivot to keep in mind for the bonds – FOMC spike high of 131’12. The seasonal Long window in the bonds ended the middle of last week.
Corn – 240 minute chart has bullish formation. Wheat – descending wedge after two days high to low. Wheat has been the weakest market on the board for an extended period of time and is quite oversold. It may have made the needed retest down of the spike off the last crop report.