Wheat rallies across the board! March Wheat futures closed 10 cents higher today to settle at $5.21 1/2 per bushel. Bulls were in control of the market the second the opening bell rung at the CBOT. Chicago Wheat has moved off its $5.60 high made on October 17th to test support after the news of the reduced wheat harvest spurned the rally that began mid-summer. However, the overall fundamental picture has not changed for Wheat as harvest this year is 15% lower than last year, resulting in an 11.2% decline in deliverable Wheat, stocks year over year. The collapse in the Dollar has also helped underpin the Wheat market, as export prices denominated in Dollars will look increasingly cheap to the international buyer. Momentum studies on the daily charts have March Wheat futures poised to test the upside in the short- term. Support can be found at $5.15 and $5 respectively with resistance pencilled in at $5.30 and the contract high at $5.60.
Gold futures soar on Dollar weakness. Metals prices seem to be trading in lockstep to Dollar weakness once again. The weaker Dollar/higher Gold paradigm is once again in play, as February Gold futures rallied $11.10 per ounce to close $652.90. Old resistance levels now are support, as the February Gold contract has broken out to the upside on the Dollar crashing to multi-year lows against the Pound Sterling and the Euro. The weak economic data for the US should support Gold, as the yellow metal tends to draw buyers when paper assets are unattractive. Support for Gold basis February comes in at $640 and $635 respectively, while resistance is likely to be found at $660 in the coming sessions.
Stocks rock! Neither higher energy prices nor geopolitical tension around the globe can keep corporate America down. The bulls showed life today, as December S&P futures tested the contract high of 1408.75 before selling-off into the close to finish at 1402.90, up 7 points on the day. Momentum on the daily charts is still overbought, but still pointing higher. The S&P 500 index is subject to selling pressure, but the bulls still are in control, as tests of support have found buyers in the face of bad economic news all over the headlines. The December S&P contract has support at 1400, 1390, and 1385 respectively. Resistance can be found at the contract highs of $1408.75. XPRESSTRADE Analyst Carl Christensen .