Good Morning Traders!
SPs dropped promptly to the lower end of the trading range. The tape was heavy as market breadth readings were worse that Friday’s readings. The short term summation tick is now deeply oversold though, and the market may be due for a reaction up or at least consolidation. The hourly EMA currently comes in at 1857, but should drop down lower as the morning progresses. Any rally back up to the hourly EMA will set up a GRAIL sale on the hourly charts (see charts above). Traders can BUY any sharp morning down or trade below Monday’s lows (morning session only), or wait for a reaction towards the hourly EMA to short. The 2-period ROC made new momentum lows so downside momentum is dominant.
Crude found support at the key 100.30 level on the first flush down, and then had a deeper test with a close back above. Look for this market to trade up higher.
Bonds have sell divergences that can lead to a better consolidation. Any deep morning down will be a BUY for a scalp. Any morning test above Monday’s high is a short.
Grains are still coiled in front of Wednesdays crop report and may remain so…Wheat is forming a bit of a short term base. Beans tested below 63 but were able to close back above.
Live Cattle can set up a Turtle Soup BUY.