KEY EVENTS TO WATCH FOR:
Thursday, January 3, 2019
7:00 AM ET. MBA Weekly Mortgage Applications Survey
Composite Idx (previous 325.9)
Composite Idx, W/W% (previous -5.8%)
Purchase Idx-SA (previous 238.6)
Purchase Idx-SA, W/W% (previous -6.8%)
Refinance Idx (previous 832.2)
Refinance Idx, W/W% (previous -2.3%)
7:30 AM ET. December Challenger Job-Cut Report
Job Cuts, M/M% (previous -29.8%)
8:15 AM ET. December ADP National Employment Report
Private Sector Jobs, Net Chg (expected +178000; previous +179000)
8:30 AM ET. Unemployment Insurance Weekly Claims Report - Initial Claims
Jobless Claims (expected 220K; previous 216K)
Jobless Claims, Net Chg (previous -1K)
Continuing Claims (previous 1701000)
Continuing Claims, Net Chg (previous -4K)
9:45 AM ET. December ISM-NY Report on Business
Business Index (previous 67.8)
9:45 AM ET. Bloomberg Consumer Comfort Index
10:00 AM ET. November Metropolitan Area Employment & Unemployment
10:00 AM ET. November Construction Spending - Construction Put in Place * This data
will not be released if the partial U.S. government shutdown remains in effect
New Construction (expected +0.2%; previous -0.1%)
Residential Construction
10:00 AM ET. December ISM Manufacturing Report on Business
Manufacturing PMI (expected 57.9; previous 59.3)
Prices Idx (previous 60.7)
Employment Idx (previous 58.4)
Inventories (previous 52.9)
New Orders Idx (previous 62.1)
Production Idx (previous 60.6)
4:00 PM ET. December Domestic Auto Industry Sales
Auto Sales Annualized (expected 17.2M; previous 17.49M)
4:30 PM ET. Federal Discount Window Borrowings
4:30 PM ET. Foreign Central Bank Holdings
4:30 PM ET. API Weekly Statistical Bulletin
Crude Stocks, Net Chg (Bbls) (previous +6.9M)
Gasoline Stocks, Net Chg (Bbls) (previous +3.7M)
Distillate Stocks, Net Chg (Bbls) (previous -0.6M)
4:30 PM ET. Money Stock Measures
Friday, January 4, 2019
8:30 PM ET. U.S. Weekly Export Sales
Corn (Metric Tons)
Soybeans (Metric Tons)
Wheat (Metric Tons)
8:30 AM ET. December U.S. Employment Report
Non-Farm Payrolls (expected +176K; previous +155K)
Unemployment Rate (expected 3.6%; previous 3.7%)
Avg Hourly Earnings (USD) (previous 27.35)
Avg Hourly Earnings-Net Chg (USD) (previous +0.06)
Avg Hourly Earnings, M/M% (expected +0.3%; previous +0.22%)
Avg Hourly Earnings, Y/Y% (previous +3.1%)
Overall Workweek (previous 34.4)
Overall Workweek Net Chg (previous -0.1)
Government Payrolls (previous -6K)
Private Payroll (previous +161K)
Participation Rate (previous 62.9%)
Non-Farm Payrolls Bench Net Chg
9:45 AM ET. December US Services PMI
PMI, Services (previous 54.7)
10:30 AM ET. EIA Weekly Natural Gas Storage Report
Working Gas In Storage (Cbf) (previous 2725B)
Working Gas In Storage, Net Chg (Cbf) (previous -48B)
11:00 AM ET. December Global Services PMI
PMI, Services (previous 53.7)
11:00 AM ET. EIA Weekly Petroleum Status Report
Crude Oil Stocks (Bbl) (previous 441.411M)
Crude Oil Stocks, Net Chg (Bbl) (previous -0.046M)
Gasoline Stocks (Bbl) (previous 233.106M)
Gasoline Stocks, Net Chg (Bbl) (previous +3.003M)
Distillate Stocks (Bbl) (previous 119.902M)
Distillate Stocks, Net Chg (Bbl) (previous +0.002M)
Refinery Usage (previous 95.1%)
Total Prod Supplied (Bbl/day) (previous 20.741M)
Total Prod Supplied, Net Chg (Bbl/day) (previous -1.588M)
Monday, January 7, 2019
10:00 AM ET. November Manufacturers' Shipments, Inventories & Orders (M3)
Total Orders, M/M% (previous -2.1%)
Orders, Ex-Defense, M/M% (previous -0.4%)
Orders, Ex-Transport, M/M% (previous +0.3%)
Durable Goods, M/M% (previous -4.4%)
Durable Goods, M/M% (previous -4.3%)
10:00 AM ET. December Employment Trends Index
ETI (previous 110.41)
ETI, Y/Y% (previous +4.4%)
10:00 AM ET. December ISM Non-Manufacturing Report on Business
Non-Mfg Composite Idx (previous 60.7)
Non-Mfg Business Idx (previous 65.2)
Prices Idx (previous 64.3)
Employment Idx (previous 58.4)
New Orders Idx (previous 62.5)
The STOCK INDEXES? http://quotes.ino.com/ex?changes/?c=indexes ""
The March NASDAQ 100 closed higher on Wednesday as it extends the rally off last-Wednesday's low. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 6500.48 are needed to confirm that a short-term low has been posted. If March resumes the decline off December's high, weekly support crossing at 5752.25 is the next downside target. First resistance is the 20-day moving average crossing at 6500.48. Second resistance is the 50-day moving average crossing at 6750.76. First support is last-Wednesday's low crossing at 5820.50. Second support is long-term support on the weekly continuation chart crossing at 5752.25.
The March S&P 500 closed slightly higher on Wednesday as it extends the rally off last-Wednesday's low. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 2562.35 are needed to confirm that a short-term low has been posted. If March renews the decline off December's high, the 38% retracement level of the 2008-2018 rally on the monthly continuation chart crossing at 2076.04 is the next downside target. First resistance is the 20-day moving average crossing at 2562.35. Second resistance is the 50-day moving average crossing at 2659.82. First support is last-Wednesday's low crossing at 2317.70. Second support is the 38% retracement level of the 2008-2018 rally on the monthly continuation chart crossing at 2076.04.
The Dow closed higher on Wednesday as a recovery in the energy market and worries about softer global growth vied for market dominance. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading.Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 23,782.02 are needed to confirm that a short-term low has been posted. If the Dow renews the decline off December's high, weekly support crossing at 21,600.34 is the next downside target. First resistance is the 20-day moving average crossing at 23,782.02. Second resistance is the 50-day moving average crossing at 24,614.33. First support is last-Wednesday's low crossing at 21,712.53. Second support is weekly support crossing at 21,600.34.
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March T-bonds closed up 31-points at 146-31.
March T-bonds closed higher on Monday as it extended the rally off November's low. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are overbought but remains neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, weekly resistance crossing at 147-03 is the next upside target. Closes below the 20-day moving average crossing at 143-31 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 146-27. Second resistance is weekly resistance crossing at 147-03. First support is the 10-day moving average crossing at 145-07. Second support is the 20-day moving average crossing at 143-31.
March T-notes closed up 85-points at 122-090.
March T-notes closed higher on Wednesday as it extends the rally off October's low. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, the 38% retracement level of the 2016-2018-decline crossing at 123.270 is the next upside target. Closes below the 20-day moving average crossing at 120.279 would confirm that a short-term top has been posted. First resistance is today's high crossing at 122.110. Second resistance is the 38% retracement level of the 2016-2018-decline crossing at 123.270. First support is the 10-day moving average crossing at 121.123. Second support is the 20-day moving average crossing at 120.279.
ENERGY MARKETS? http://quotes.ino.com/ex?changes/?c=energy ""
February crude oil closed higher on Wednesday. The mid-range close sets the stage for a steady to higher opening when Thursday's night session begins. Stochastics and the RSI have turned neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 48.82 are needed to confirm that a short-term low has been posted. If February renews the decline off October's high, the January-2016 low crossing at 41.48 is the next downside target. First resistance is the 20-day moving average crossing at 48.82. Second resistance is the reaction high crossing at 54.55. First support is last-Monday's low crossing at 45.13. Second support is the January-2016 low crossing at 41.48.
February heating oil closed higher on Wednesday. The mid-range close sets the stage for a steady opening when Thursday's night trading session begins. Stochastics and the RSI are oversold but are turning neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 178.42 are needed to confirm that a low has been posted. If February extends the decline off October's high, the 87% retracement level of the 2017-2018-rally crossing at 162.34 is the next downside target. First resistance is the 20-day moving average crossing at 178.42. Second resistance is the reaction high crossing at 188.40. First support isthe 87% retracement level of the 2017-2018-rally crossing at 162.34. Second support is the June-19th-2017 low crossing at 150.08.
February unleaded gas closed slightly higher on Wednesday. The mid-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI have turned neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 137.62 would confirm that a short-term low has been posted. If February resumes the decline off October's high, the January-10th 2016 low crossing at 110.45 is the next downside target. First resistance is the reaction high crossing at 151.77. Second resistance is the 50-day moving average crossing at 152.22. First support is last-Wednesday's low crossing at 122.93. Second support is the January-10th 2016 low crossing at 110.45.
February Henry natural gas closed slightly lower on Wednesday as it extends the decline off November's high. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If February extends this month's decline, the February-2016 low crossing at 2.770 is the next downside target. Closes above Monday's gap crossing at 3.278 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 3.421. Second resistance is the 20-day moving average crossing at 3.767. First support is today's low crossing at 2.905. Second support is the February-2016 low crossing at 2.770.
CURRENCIES? http://quotes.ino.com/ex?changes/?c=currencies ""
The March Dollar posted a key reversal up on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that a low might be in or is near. If March extends the decline off December's high, November's low crossing at 94.91 is the next downside target. If March renews the rally off September's low, weekly resistance crossing at 97.83 is the next upside target. First resistance is December's high crossing at 97.20. Second resistance is weekly resistance crossing at 97.83. First support is the reaction low crossing at 95.38. Second support is November's low crossing at 94.91.
The March Euro posted a key reversal down on Wednesday. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If March renews the decline off September's high, the 87% retracement level of the 2016-2018-rally crossing at 111.94 is the next downside target. If March renews the rally off December's low, November's high crossing at 116.45 is the next upside target. First resistance is the reaction high crossing at 115.92. Second resistance is November's high crossing at 116.45. First support is November's low crossing at 113.53. Second support is the 87% retracement level of the 2016-2018-rally crossing at 111.94.
The March British Pound closed lower on Wednesday. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If March resumes the decline off September's high, the October-2016 low crossing at 1.2384 is the next downside target. Closes above the 50-day moving average crossing at 1.2863 would open the door for a possible test of November's high crossing at 1.3257. First resistance is the 50-day moving average crossing at 1.2863. Second resistance is November's high crossing at 1.3257. First support is December's low crossing at 1.2540. Second support is the October-2016 low crossing at 1.2384.
The March Swiss Franc posted a key reversal down on Thursday.The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below last-Wednesday's low crossing at 1.0117 would confirm that a short-term top has been posted. If March extends the rally off November's low, the 50% retracement level of the September-November-decline crossing at 1.0330 is the next upside target. First resistance is last-Friday's high crossing at 1.0288. Second resistance is the 38% retracement level of the September-November-decline crossing at 1.0256. First support is the reaction low crossing at 1.0097. Second support is November's low crossing at 1.0018.
The March Canadian Dollar closed higher on Wednesday as it consolidates some of the decline off October's high. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off October's high, the 75% retracement level of the 2016-2017-rally crossing at 72.93 is the next downside target. Closes above the 20-day moving average crossing at 74.42 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 73.82. Second resistance is the 20-day moving average crossing at 74.42. First support is Monday's low crossing at 73.30. Second support is the 75% retracement level of the 2016-2017-rally crossing at 72.93.
The March Japanese Yen closed higher on Wednesday as it extends the rally off December's low. The mid-range close sets the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December's low, the 50% retracement level of the March-November-decline crossing at 0.0933 is the next upside target. Closes below the 20-day moving average crossing at 0.0900 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 0.0925. Second resistance is the 50% retracement level of the March-November-decline crossing at 0.0933. First support is the 10-day moving average crossing at 0.0908. Second support is the 20-day moving average crossing at 0.0900.
PRECIOUS METALS? http://quotes.ino.com/ex?changes/?c=metals ""
February gold closed lower on Wednesday as it consolidated some of the rally off August's low. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low, the 62% retracement level of the April-August-Decline crossing at 1312.70 is the next upside target. Closes below the 20-day moving average crossing at 1258.20 would confirm that a short-term top has been posted. First resistance is the 50% retracement level of the April-August-Decline crossing at 1285.70. Second resistance is the 62% retracement level of the April-August-Decline crossing at 1312.70. First support is the 10-day moving average crossing at 1269.40. Second support is the 20-day moving average crossing at 1258.20.
March silver closed slightly higher on Wednesday as it extends the rally off November's low. The mid-range close set the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December's low, is the 38% retracement level of the 2017-2018-decline crossing at 15.733 is the next upside target. Closes below the 20-day moving average crossing at 14.871 would confirm that a short-term top has been posted. First resistance is today's high crossing at 15.680. Second resistance is the 38% retracement level of the 2017-2018-decline crossing at 15.733. First support is the 10-day moving average crossing at 15.069. Second support is the 20-day moving average crossing at 14.871.
March copper closed lower on Wednesday as it extend the decline off December's high. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, the 62% retracement level of the 2016-2018-rally crossing at 251.75 is the next downside target. Closes above the 50-day moving average crossing at 273.97 would confirm that a short-term low has been posted. First resistance is the reaction high crossing at 280.35. Second resistance is December's high crossing at 285.80. First support is today's low crossing at 259.45. Second support is the 62% retracement level of the 2016-2018-rally crossing at 251.75.
GRAINS? http://quotes.ino.com/ex?changes/?c=grains "
March Corn closed up 1-cent at 3.76.
March corn closed higher on Wednesday.The mid-range close sets the stage for a steady opening when Thursday's night sessions begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, November's low crossing near 3.67 1/4 is the next downside target. Closes above the 20-day moving average crossing at 3.80 3/4 would confirm that a short-term low has been posted. First resistance is December's high crossing at 3.87 3/4. Second resistance is November's high crossing at 3.90. First support is last-Wednesday's low crossing near 3.72 1/2. Second support is November's low crossing at 3.67 1/4.
March wheat closed up 5-cents at 5.08 1/4.
March wheat closed higher on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, psychological support crossing at 5.00 is the next downside target. Closes above the 20-day moving average crossing at 5.20 1/2 would temper the near-term bearish outlook. First resistance is the 20-day moving average crossing at 5.20 1/2. Second resistance is December's high crossing at 5.38 1/2. First support is today's low crossing at 5.01 1/4. Second support is psychological support crossing at 5.00.
March Kansas City Wheat closed up 3 3/4-cent at 4.92 1/2.
March Kansas City wheat closed higher on Wednesday. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, November's low crossing at 4.82 1/4 is the next downside target. Closes above the 50-day moving average crossing at 5.08 3/4 would confirm that a short-term low has been posted. First resistance is December's high crossing at 5.24 1/2. Second resistance is November's high crossing at 5.33 3/4. First support is Monday's low crossing at 4.87 1/4. Second support is November's low crossing at 4.82 1/4.
March Minneapolis wheat closed up 5-cents at 5.54.
March Minneapolis wheat closed higher on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off December's high, weekly support on the continuation chart crossing at 5.23 3/4 is the next downside target. Closes above the 50-day moving average crossing at 5.75 3/4 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 5.69 1/4. Second resistance is the 50-day moving average crossing at 5.75 3/4. First support is last-Thursday's low crossing at 5.44 1/2. Second support is weekly support crossing at 5.23 3/4.
SOYBEAN COMPLEX? http://quotes.ino.com/ex?changes/?c=grains "
March soybeans closed up 11 3/4-cents at 9.06 3/4.
March soybeans closed higher on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 9.11 1/2 are needed to temper the near-term bearish outlook. If March renews the decline off December's high, the reaction low crossing at 8.71 1/4 is the next upside target. First resistance is the 50% retracement level of the May-September-decline crossing at 9.46 1/2. Second resistance is the 62% retracement level of the May-September-decline crossing at 9.72 1/4. First support is the reaction low crossing at 8.71 1/4. Second support is October's low crossing at 8.58.
March soybean meal closed up $4.80 at 314.70.
March soybean meal closed higher on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 316.90 are needed to confirm that a low has been posted. If March resumes the decline off December's high, November's low crossing at 305.30 is the next downside target. First resistance is December's high crossing at 321.70. Second resistance is October's high crossing at 327.40. First support is November's low crossing at 305.30. Second support is September's low crossing at 303.40.
March soybean oil closed up 39 pts. at 28.24.
March soybean oil higher on Wednesday as it consolidates some of the decline off December's high. The high-range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 28.57 are needed to confirm that a low has been posted. If March renews the aforementioned decline, November's low crossing at 27.42 is the next downside target. First resistance is the 20-day moving average crossing at 28.55. Second resistance is the reaction high crossing at 29.09. First support is last-Thursday's low crossing at 27.58. Second support is November's low crossing at 27.42.
LIVESTOCKhttp://quotes.ino.com/exchanges/?c=livestock
February hogs closed up $0.73 at $61.70.
February hogs closed higher on Wednesday. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are oversold but are turning neutral to bullish signaling that a low might be in or is near. Closes above the 50-day moving average crossing at 64.18 would confirm that a short-term low has been posted. If February extends the decline off November's high, November's low crossing at 59.25 is the next downside target. First resistance is the 20-day moving average crossing at 63.64. Second resistance is the 50-day moving average crossing at 64.18. First support is last-Thursday's low crossing at 60.25. Second support is November's low crossing at 59.25.
February cattle closed down $0.35 at 123.53.
February cattle closed lower on Wednesday. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are diverging and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 122.57 would confirm that a short-term top has been posted. If February extends the rally off November's low, weekly resistance crossing at 127.95 is the next upside target. First resistance is Monday's high crossing at 124.95. Second resistance is weekly resistance crossing at 127.95. First support is the 20-day moving average crossing at 122.57. Second support is the 50-day moving average crossing at 121.45.
March Feeder cattle closed down $0.80 at $145.95.
March Feeder cattle closed lower on Wednesday. The high-range close sets the stage for a steady to higher opening when Thursday's session begins trading. Stochastics and the RSI are overbought and are turning neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 144.69 would confirm that a short-term top has been posted. If March extends the rally off December's low, November's high crossing at 149.23. First resistance is Monday's high crossing at 147.58. Second resistance is November's high crossing at 149.23. First support is the reaction low crossing at 142.72. Second support is December's low crossing at 140.35.
FOOD & FIBERhttp://quotes.ino.com/ex changes/?c=food
March coffee closed lower on Wednesday. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If March resumes the decline off October's high, weekly support crossing at 9.51 is the next downside target. Closes above the 20-day moving average crossing at 10.26 would confirm that a short-term low has been posted.
March cocoa closed lower on Wednesday. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December's low, July's high crossing at 25.96 is the next upside target. Closes below the 20-day moving average crossing at 22.66 would confirm that a short-term top has been posted.
March sugar closed lower on Wednesday as it extends the decline off October's high. The low-range close set the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off October's high, the 75% retracement level of the September-October-rally crossing at 11.65 is the next downside target. Closes above the 20-day moving average crossing at 12.51 would confirm that a low has been posted.
March cotton closed sharply lower on Wednesday as it extends the decline off December's high. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower possible near-term. If March extends this month's decline, the 75% retracement level of the 2016-2018-rally crossing at 74.04 is the next downside target. Closes above the 20-day moving average crossing at 76.69 are needed to confirm that a short-term low has been posted.