Weekend Chart Update #1

Beans The bean complex had a great week. They took out some resistance early Wednesday and followed with a big wide range candle Thursday.

The [1] [2], (1) (2) count is in jeopardy. The critical resistance level is 1071.75(red line), the high of [2]. If this level is taken, then we have to assume that b needs more work, or something else is at play.

We closed right at some resistance Friday. The 2:1 is at 1045.50 with the 88.6% directly above it. Also, notice the dark green trend line. This originates from the 7/7/08 H.

When you scale down to a smaller time frame it appears that we may have finished, or very close to finishing, a 3 wave. We don't have a whole lot of margin for error here.

Wheat The wheat market appears to be tracing out an expanded flat for its wave [4].

AB=CD at 547, while the 127.2% sits around 558. You will notice a dark red trend line that starts from the 12/5/08 L. This did a good job of stopping the intermediate (A) leg and I suspect it will do the same for the (C) leg, should price reach that level.

At the conclusion of this flat, I'm expecting price to continue its downtrend to complete an important bottom. We will also be able to put a new channel in when [4] is finally complete.

There is a possibility that the intermediate (B) wave is actually [5]. If you drill down you could possibly wrestle a ending diagonal out of it. I don't believe that is the case.

I'm looking for this counter-trend rally to resume next week and possibly continue into the following, but ultimately finding its way lower to complete [5].

Corn The corn market followed the rest of the grains and put in a counter-trend rally.

If my interpretation of structure is correct, corn completed its primary [3] wave. It has currently reached the 23.6% retracement area. There is also a gap from 7/2 that looks ripe for filling (highlighted box).

The 4th of lesser degree is also in the area. The rest of the retracement ratio's are on the chart should it need a deeper retrace.

Corn, like wheat, is setting up for an important bottom.