S&P 500 had a minor retrace this morning and firmed up around 10am. I expect a minor bias up the rest of the day waiting for Microsoft earnings after the bell.
I’ve had a request to take a peek at wheat. Let us take a look.
First the weekly chart. First thing that jumped out on the chart was the clear five wave sequence in progress down from the high from last year. I next added the Schiff channel which reinforces this first impression as wheat prices have resonated well with the harmonics of the channel. The question now is if the five-wave sequence down from (iv) is complete or needs another small down/up sequence. I’ll take a look at the daily chart in a moment in an attempt to answer that question. Meanwhile, if a bounce of consequence does kick in now, first major hurdle to clear is at 801.50. If that barrier is cleared, safe to assume a pop up to 889.75 or 978.00.
Dipping down into the daily chart, we see positive divergence on the adaptive CCI and an exhaustion signal on the Wave 59 9-5 study. Looks like a punch over 739.00 will lead to a push to 790.75 or 801.50. Next major cycle inflection is in the middle of March.