Futures Market Technical and Fundamental Analysis Recap

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Today's Futures Analysis summary

July Corn closed sharply higher for the week and in a position to turn the main trend to up on the weekly chart on a move through the last swing top at 417 1/2. Wet fields and a forecast for more rain next week is expected to limit farmer fieldwork and delay planting.

July Sugar finished the week in an extremely bullish position after finally breaking through a major resistance area on the weekly chart at 14.09. The strong close on the weekly chart puts this market in a position to challenge the July and August 2008 double-top at 15.90.

July Coffee is rallied sharply higher in New York. The news that demand will outstrip supply fueled the bullishness. Traders cite the large drawdown in warehouse stocks as the main cause for the strong surge.

Fundamentally, June Crude oil remains under pressure because of the global oil glut. What is supporting this market at this time is speculation that a recovery in the U.S. economy will lead to renewed demand for crude and crude products.

June Treasury Bonds and June Treasury Notes continue to drift lower as yields rise. This current downtrend doesn’t look like speculation that rates will rise but seems to be reflecting the true condition of the economy at this time.

Equity futures surged this week but closed off the highs. The top coincided with Chrysler filing bankruptcy. This news gave investors an excuse to take profits but should not be called a “shock” as the market has most likely already priced in the bankruptcy. After all, it’s been in the news since December.

The rally in the equity markets this week reduced investor demand for precious metals as an alternative investment. Increased appetite for more risky assets sent investor cash into stocks and out of hard assets.

July Platinum continued to weaken as demand from the auto industry is falling. Chrysler's bankruptcy was not good news for platinum prices. Auto production is expected to be shutdown thereby curtailing demand for platinum used in catalytic converters. General Motors may also declare bankruptcy in the near future. This could further limit industrial demand for platinum.

By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis .

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