Soybeans Upward Trend Comes Under Pressure

Recent talk of a trade war between the United States and China have stalled the upward trend in Soybeans.  With this stall, support has formed around 1045 in the May 2018 contract.  I have recently exited my long position in this market as I wait a resumption of a trend.

Equities Continued Volatility

The equity markets continued their volatility this week attributable mainly to US domestic political factors (Jerome Powell testifying before congress and an indication that trade tariffs may be coming out of Washington).  Regardless of the impetus for the volatility, the market is clearly becoming more sensitive to external factors and it is a time for close stops to limit risk.  I entered the market briefly on Monday with tailwinds of strong upward momentum but was later stopped-out as the move lost it’s strength and turned downward.  I am currently Flat in the S&P futures market.

S&P Poised to Continue Rebound

Since hitting an intraday low of 2532 on February 9th, the S&P has rebounded 8.49%.  Based on the strength and velocity of this recovery my system shows a 4:1 bias towards a continued rebound and an eventual take-out of previous record highs.  I have been Flat this market since early February however am looking to go Long on continued strength as this market continues it’s recovery.