Pre-Market Set-up for Monday May 13, 2019

We are watching the following markets on this trading day:

S&P – June 2019 Contract
Having fallen over 2% this past week amid concerns over trade negotiations between the US & China, I believe this market will enter into a consolidation pattern this week. If I am correct and the market moves sideways, we will remain on the sidelines. If, however, the S&P shows strength and trades above 2930 (above the current area of congestion) or continues to breakdown and trades below 2826 (breaking the current levels of support), we will be looking to enter the market for a trade.

Soybeans – July 2019 Contract
Amid trade talk concerns, Soybeans fell 3.92% over the past week. Based on market fundamentals, this sell-off has been over-done and I am looking for a retracement of these looses to fill-in the gap left at 336 – 340. I will be looking to enter this market on the Long side if it recovers above 806.00.

Wheat – July 2019 Contract
Similar to Soybeans, Wheat has been a casualty of the current US-China trade talks. I am looking for a recovery above 438.00 to enter this market on the Long side.

Crude Oil – WTI July 2019 Contract
Amid growing world tensions and strong demand, Crude is trending upward. I am looking for a push above 63.00 where we will be looking to go Long.

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.