Wednesday, September 22, 2010

Yesterday's Market

Prices are above important technical levels still (a). In addition, the EMA picture is strong (b)-- the shorter EMAs are above the longer EMAs and the 10, 20 and 50 day EMA are rising. Prices are above the 200 day EMA. Also note that volume has been increasing for the last week or so (c).

The underlying technicals are strong - the A/D line is rising (a) and the CMF shows a net inflow of cash (b). Also note momentum is positive (c).

Last week, prices consolidated (a). Yesterday they rose (b) and today the held steady (c).

On the down side, bonds rallied strongly yesterday (a) on the Fed's decision. This will take some money out of equities.

In addition, bonds are in a clear upwardly sloping position (a). Today prices gapped higher at the open (b) and then rallied strongly after the Fed's decision (c).

Corn's rate of increase in getting steeper -- note the progressively steepening angles (A, B and C). The EMA picture is strong (D, all rising) and the MACD indicates upward momentum (E).

Cotton is also in a clear uptrend (A), accompanied with strong upside gaps (B) and a positive EMA picture (C). Also note the MACD has popped higher (D).

After moving strongly higher (A), wheat is consolidating in two triangles (B and C).