Good Morning Traders!
SPs had a Buy Day after two days high to lo. A morning gap up led to a reaction down….the index then closed at the upper end of the range. Good leadership in IBM, MON, SLB, AAPL, drugs, and breadth remained positive throughout the day. A three bar triangle pattern has now formed in both the SPs and the Russell. Keep an eye on the NAZ which held a close back above its 20 day low (flush).
Wheat also has a breakout setup – this is the first Sell Div that the 2-period ROC has formed – signs of resistance. Also, Gold has a bullish Buy div on the 2-period ROC…it has had 6/7 closes below the 5 SMA depending on which software is used for computing the 5 SMA – it would need a close back above 1318.
Sugar has consolidated nicely and the three bar triangle breakout pattern suggests ignoring the pinball sell that has popped up on the tradesheet.
I like the symmetry on the Canadian Dollar weekly Buy divergence.