The June NASDAQ 100 finds near term resistance at last week's high of 1646.00 in confluence with the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed below the 18-day Moving Average every day since late April). If the market exceeds last week's high and the 9-day Moving Average closes back above the 18-day Moving Average it could quickly run to the current major weekly Fibonacci .618 retracement at 1691.60 (as measured between this year's current weekly high of 1774.00 and this year's current weekly low of 1558.50) or the current intermediate daily Fibonacci .618 retracement at 1701.20 (as measured between the daily April high of 1774.30 and the current contract low of 1583.00) . If the rally does not end here expect the market to test the weekly April high of 1766.00 or the weekly January high of 1774.00. A break out to new highs should send the NASDAQ 100 right on up to the psychological 2000 area. Further resistance is at the weekly May 2001 reaction high of 2076.00. The September NASDAQ 100 finds near term support at the contract low of 1583.00. Further support is at this year's current weekly low of 1558.50. A break to new weekly lows could take the market right to the weekly October low of 1523.00. Further support is at the current major weekly Fibonacci .618 retracement at 1482.30 (as measured between the 2004 weekly low of 1302.00 and this year's current multi-year weekly high of 1774.00). Open Interest is at a two month high. The NASDAQ 100 should move higher for the first week of June and then sideways for the rest of the month. Commercial interests are holding their smallest net short position since Thanksgiving. Large traders (hedge funds) are still holding almost the same size of net long position that they have had since early February. Small traders are holding the biggest net short position since mid-December.

Interest rates - June T-bonds find near term resistance at the current intermediate daily Fibonacci .382 retracement at 107-22 (as measured between the March 17th reaction high of 111-29 and the current contract low of 105-03) in confluence with the May high of 107-23. (T-bonds have made lower monthly lows and lower monthly highs for the last four months). A rally above last month's high should take the market right back to the weekly 2005 low of 109-00 (old support) in confluence with the current intermediate weekly Fibonacci .382 retracement at 109-06 (as measured between this year's current weekly high of 115-13 and this year's current weekly low of 105-11). After that the market could go to the current intermediate weekly Fibonacci .618 retracement at 111-18 (as measured between this year's current weekly high of 115-13 and this year's current weekly low of 105-11). Near term support is at the current contract low of 105-03. A break below it could slam the market down to the 2004 low of 103-02 or even a major monthly Fibonacci .618 retracement at 102-16 (as measured between the monthly 2000 low of 89-01 and the 2003 all-time high of 124-10). Further support is at the psychological 100 level. The September NOB spread (T-notes vs. T-bonds) finds near term support between the new contract low of 26/32nds premium T-bonds. Further support is at the psychological even money level. After that the spread could drop to the current major weekly Fibonacci .618 retracement at 1-165 premium T-notes (as measured between the weekly 2005 high at 5-03 premium T-bonds and the weekly 2003 low of 5-20 premium T-notes). Near term daily resistance at the current intermediate daily Fibonacci .382 retracement at 1-295 premium T-bonds (as measured between the March 24th reaction high at 3-23 premium T-bonds and the current contract low of 26/32nds premium T-bonds). Further resistance is at the current major daily Fibonacci .382 retracement at 2-16 premium T-bonds (as measured between the daily January high at 5-07 premium T-bonds and the current contract low of 26/32nds premium T-bonds) in confluence with the current intermediate daily Fibonacci .618 retracement at 2-195 premium T-bonds (as measured between the March 24th reaction high at 3-23 premium T-bonds and the current contract low of 26/32nds premium T-bonds). After that the spread could head back up to the current major daily Fibonacci .618 retracement at 3-17 premium T-bonds (as measured between the daily January high at 5-07 premium T-bonds and the current contract low of 26/32nds premium T-bonds) in confluence with the March 24th reaction high at 3-23 premium T-bonds. Open Interest is at a five week low. The %R overbought/oversold indicator shows that T-bonds are oversold on the weekly chart. T-bonds have a seasonal tendency to rally in the first half of June and then move sideways for the rest of the month. Commercial interests have aggressively increased the size of their record net long position for the last few weeks. At the same time, large traders have aggressively increased the size of their record net short position. Small traders increased the size of their record net short position.on. Small traders increased the size of their record net short position.

June T-notes find near term resistance at the May high of 105-305 (T-notes have made lower monthly lows and lower monthly highs for the last four months). A rally above last month's high could send the market to the current minor weekly Fibonacci .618 retracement at 108-02 (as measured between this year's current weekly high of 110-065 and this year's current weekly low of 104-185) or the current intermediate weekly Fibonacci .382 retracement at 108-12 (as measured between last year's weekly high of 114-16 and this year's current weekly low of 104-185). After that the market could go to the current intermediate weekly Fibonacci .618 retracement at 110-23 (as measured between last year's weekly high of 114-16 and this year's current weekly low of 104-185). Near term support is located between the current contract low of 104-13 and a major monthly Fibonacci .618 retracement at 104-04 (as measured between the 2000 low of 93-215 and the 2003 all-time high of 121-01). Further support is at the 2002 low of 101-295. If the decline does not end here T-notes could plunge to the psychological 100 mark. Open Interest is at a two month low. The %R overbought/oversold indicator shows that T-notes are oversold on the weekly and monthly charts. T-notes have a seasonal tendency to move higher in June. Commercials are holding the biggest net long position since Halloween. Large traders (hedge funds) are now net short for the first time since then. Small traders covered some of their net short position to turn more neutral on their T-note position.

International bonds - September Canadian 10-year bonds find near term support at last week's low of 110.87. Further support is at the current major daily Fibonacci .618 retracement at 110.34 (as measured between the daily May high of 112.50 and the current contract low of 109.00). If this market does not establish support here it could drop back down to the contract low of 109.00. Near term resistance is at the daily May high of 112.50. A strong close above it could allow the market to run up to the current major weekly Fibonacci .382 retracement at 112.80 (as measured between last year's all-time high of 117.78 and this year's current contract low of 109.72) or even the current intermediate weekly Fibonacci .618 retracement at 113.16 (as measured between this year's current weekly high of 115.29 and this year's current contract low of 109.72). Further resistance is at the current major weekly Fibonacci .618 retracement at 114.70 (as measured between last year's all-time high of 117.78 and this year's current contract low of 109.72).  Sepember Euro bunds find near term resistance at the May high of 117.08 (bunds have made lower monthly lows and lower monthly highs for the last four months). If bunds can break out above last month's high expect a short-covering rally to drive the market up to the current major weekly Fibonacci .382 retracement at 118.39 (as measured between last year's all-time weekly high of 124.60 and this year's current contract low of 114.55). Further resistance is at the psychological 120 level. Near term support is found between last week's low of 115.67 and the current minor daily Fibonacci .618 retracement at 115.47. Further support is at the contract low of 114.55. If Euro bunds hit a new contract low they could decline to a major monthly Fibonacci .618 retracement at 112.18 (as measured between the 2002 low of 104.50 and last year's all-time high of 124.60) or even the 2004 low of 111.81.  September London long gilts find near term resistance at the May high of 110.36 (gilts have made lower monthly lows and lower monthly highs for the last four months). A rally above it could send the market up to the major weekly Fibonacci .382 retracement at 111.54 (as measured between this year's current weekly high of 116.08 and this year's current weekly low of 108.84). Further resistance is at the major weekly Fibonacci .618 retracement at 113.28 (as measured between this year's current weekly high of 116.08 and this year's current weekly low of 108.84). Near term support is found between last week's low of 109.30 and the current minor daily Fibonacci .618 retracement at 109.19. Further support is at the contract low of 108.46. If September long gilts hit a new contract low they could plunge to the 2004 low of 104.86 or even the 1999 low of 104.29.  September Australian 10-year bonds find near term support at last week's low of 94.22 in confluence with the current minor daily Fibonacci .618 retracement at 94.21. Further support is at the contract low of 94.12. A break to new lows could send the market down to the weekly 2004 low of 93.88. Near term resistance is at the May high of 94.355 (Aussie bonds have made lower monthly lows and lower monthly highs for the last four months). A rally above it should take the market to the current intermediate weekly Fibonacci .382 retracement at 94.47 (as measured between last year's weekly high of 95.03 and the current contract low of 94.12). Further resistance is at the intermediate weekly Fibonacci .618 retracement at 94.68 (as measured between last year's weekly high of 95.03 and the current contract low of 94.12).  September JGB's  find near term support at last week's low of 131.12 in confluence with the current minor daily Fibonacci .618 retracement at 131.06. Further support is clustered between the major monthly Fibonacci .618 retracement at 130.29 (as measured between the 1994 low of 106.42 and the 2003 all-time high of 145.04), the current contract low of 130.21, and the 2000 monthly low of 130.17. If September JGBs do not stabilize in this area they could plunge to the 1999 spike low of 125.70. Near term resistance is at the May high of 132.43 (September mini JGBs have made lower monthly highs for five out of the last six months). Further resistance is at the current intermediate weekly Fibonacci .382 retracement at 135.29 (as measured between last year's double top weekly high of 141.35 and this year's current weekly low of 131.55). Further resistance is at the current intermediate weekly Fibonacci .618 retracement at 137.61 (as measured between last year's double top weekly high of 141.35 and this year's current weekly low of 131.55).

Currencies - The US dollar index finds near term support at last week's multi-month low of 85.77. Further support is at the major weekly Fibonacci .618 retracement at 85.08. A weak close below 85 cents could allow the greenback to tumble down to the March 2005 reaction low of 81.27 or the 2004 low of 80.48. Near term resistance is at last week's high of 87.62 (the US dollar index has made lower weekly highs for seven consecutive weeks) in confluence with the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed below the 18-day Moving Average every day for about a month). If this market breaks out above a previous week's high and the 9-day Moving Average closes back above the 18-day Moving Average expect a quickly rally to the current intermediate weekly Fibonacci .382 retracement at 88.35 (as measured between last year's weekly high of 92.53 and this year's current weekly low of 85.77) followed closely by the weekly chart gap area between 88.60 and 88.91. If the rally does not end here expect the market to test is the current intermediate weekly Fibonacci .618 retracement at 89.95 (as measured between last year's weekly high of 92.53 and this year's current weekly low of 85.77). Open Interest is still flat. The %R overbought/oversold indicator shows that the greenback is oversold on the daily and weekly charts. The Seasonal index shows that the dollar should be flat for most of May and rally slightly in the last few trading days of the month. Commercial interests are net long on the greenback for the first time since mid-September. Large traders are holding the smallest net long position since then. Small traders are holding the biggest net short position since December 2004.

The Canadian dollar finds near term resistance at last week's new multi-year high of .8970. Further resistance is at the psychological 95 cent mark. A strong close above 90 cents could launch the "looney" toward parity with the US dollar. Near term support is at last week's low of .8785 (the "looney" has made higher weekly highs and higher weekly lows for three consecutive weeks). A break below it could allow the market to pull back to the current minor daily Fibonacci .618 retracement at .8688 (as measured between the daily April low of .8513 and the daily April high of .8970). Further support is at a weekly Fibonacci .382 retracement at .8544 (as measured between the weekly 2005 low of .7855 and this year's current weekly high of .8970), the daily April low of .8513, and the daily January low of .8511. Further support is at the weekly November low of .8357. Open Interest is at a six week high. The %R overbought/oversold indicator shows that the Canadian dollar is overbought on the daily, weekly, and monthly charts. Seasonally, the Canadian dollar has a tendency to be flat during most of May with a quick spike up and back down in the middle of the month. Commercial interests are holding the largest net short position since mid-March. Large traders are holding the biggest net long position in two months. Small traders are neutral on the "looney".

The Australian dollar finds near term resistance at last week's high of .7628. Further resistance is at the contract high of .7770. A rally above it could encourage buyers to run this market on up to the weekly April 2005 high of .7819. After that the Aussie could hit the 2004 and 2005 highs of .7980 and .7992. Near support is at last week's one month low of .7430. Further support is at the current major daily Fibonacci .618 retracement at .7297 (as measured between the contract high of .7770 and the contract low of .7005). Failure to stabilize here could result in a decline to this year's current weekly low of .7006 . Open Interest is at the highest level since December. Seasonally, the Australian dollar has a tendency to rally in the middle of June but trade mostly sideways during the rest of the month. Commercials are holding the biggest net short position since the beginning of February. Large traders (hedge funds) are holding the largest net long position since mid-February. Small traders are also holding the biggest net long position since the beginning of February.

The September Canadian dollar/Australian dollar finds near term resistance at last week's new spread high of .1638 (about sixteen and a third of a cent) premium Canadian dollar. Further resistance is at a weekly "A,B,C" wave projection at .1738 (about seventeen and a half cents) premium Canadian dollar. (This is based on a weekly "A,B,C" wave projection where wave "A" is the move from this year's current weekly low of .1053 (about ten a and a half cents) premium Canadian dollar to the weekly March high of .1504 (about fifteen cents) premium Canadian dollar, wave "B" is the correction from the weekly March high of .1504 (about fifteen cents) to the weekly May low of .1287 (just under thirteen cents), and wave "C" is the move back up off of the weekly May low of .1287 (just under thirteen cents). In bull markets, wave "C" is usually at least the same size as wave "A"). Near term support is at the current minor daily Fibonacci .618 retracement at .1443 (just under fourteen and a half cents) premium Canadian dollar. Further support is at the daily May low of .1323 (about thirteen and a quarter cents) premium Canadian dollar in confluence with the current major daily Fibonacci .618 retracement at .1320 (about thirteen and a quarter cents). If the spread does not stabilize here it could test this year's low on the daily chart at low at .1123 (about eleven and a quarter of a cent) premium Canadian dollar.

The British pound finds near term resistance at last week's high of 1.8900. Further resistance is at the contract high of 1.9054. A break out to new contract highs could send sterling shooting up to the weekly 2004 high of 1.9500. Further resistance is at the 1992 high of 2.0088. Near support is at last week's low of 1.8598 (sterling has made higher weekly lows for seven out of the last eight weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since early April). If this market cracks a previous week's low and the 9-day Moving Average closes decisively below the 18-day Moving Average expect a decline to the current major weekly Fibonacci .382 retracement at 1.8275 (as measured between last year's weekly low of 1.7046 and this year's current weekly high of 1.9035) or the monthly May low of 1.8218 (sterling has only broken a previous month's low once in the last six months). Further support is at the current intermediate weekly Fibonacci .618 retracement at 1.7806 (as measured between last year's weekly low of 1.7046 and this year's current weekly high of 1.9035). Open Interest is at the highest level since mid-March. The %R overbought/oversold indicator shows that sterling is near overbought on the daily chart. The pound has a seasonal tendency to be flat with a bullish bias in June. Commercials are holding the biggest net short position since mid-September. Large traders (hedge funds) are holding the biggest net long position since then. Small traders are also holding the biggest net long position since then.

The September Swiss franc finds near term resistance at last week's high of .8383. Further resistance is at the contract high of .8497. If the Swissie breaks out to a new contract high expect it to surge to the weekly 2004 high of .8892. Further resistance is at the 1995 high of .9038. Near support is at last week's low of .8224 (the Swissie has made higher weekly lows for seven out of the last eight weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since early April). If this market drops below a previous week's low and the 9-day Moving Average closes below the 18-day Moving Average the market could decline to the weekly January high of .8001 (old resistance). Failure to stabilize here could pull the market down to the current major weekly Fibonacci .618 retracement at .7881 (as measured between last year's weekly low of .7548 and this year's current weekly high of .8421). Open Interest is flat. The Seasonal index shows that the Swiss franc usually moves sideways in June. Commercial interests are holding the smallest net long position in nearly three months. Large traders are holding the smallest net short position since the beginning of February. Small traders are holding the smallest net short position in three months.

The Euro currency finds near term resistance at last week's high of 1.3025. Further resistance is at the contract high of 1.3074. A break out to a new contract high could send the Euro running for the weekly 2004 high of 1.3687. Further resistance is at the psychological 1.40 mark. Near term support is at last week's low of 1.2810 (the Euro has made higher weekly lows for twelve out of the last thirteen weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day for nearly two months). If this market breaks below a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average look for it to test the monthly May low of 1.2595 (the Euro has made higher monthly lows for five out of the last six months). A break below last month's low should take the market right down to the current major weekly Fibonacci .382 retracement at 1.2490 (as measured between last year's weekly low of 1.1661 and this year's current weekly high of 1.3003). Further support is at the current major weekly Fibonacci .618 retracement at 1.2174 (as measured between last year's weekly low of 1.1661 and this year's current weekly high of 1.3003). Open Interest is at the highest level since mid-March. The %R overbought/oversold indicator shows that the Euro is nearing overbought levels on the daily and weekly charts. Seasonally, the Euro should move sideways in June. Commercial interests are holding a new record size net short position. Large traders are holding a new record size net long position. Small traders are holding the largest net long position that they have had since mid-June.

The Japanese yen finds near term resistance at the current daily Fibonacci .618 retracement at .009186 followed by the weekly May high of .009217 and the major weekly Fibonacci .618 retracement at .009248 (as measured between last year's high of .009864 and last year's low of .8252). If the yen can get past this gauntlet of technical resistance look for a run to the major weekly Fibonacci .786 retracement at .009519 (as measured between last year's high of .009864 and last year's low of .8252). Near term support is clustered between the weekly May 24th reaction low of .008862, the current major weekly Fibonacci .382 retracement at .008848 (as measured between last year's low of .008252 and this year's current weekly high of .009217), and the monthly May low of .008810. Further support is located at the huge daily chart gap between .008699 and .008647 and followed closely by the current major weekly Fibonacci .618 retracement at .008621 (as measured between last year's low of .008252 and this year's current weekly high of .009217) and the daily April low of .008600. Open Interest is flat. The yen has a seasonal tendency to move sideways in June. Commercial interests reversed positions on the yen and are now holding their largest net short position since March 2005. Large traders are holding their smallest net short position since then. Small traders are holding their largest net long position since January 2005.

Metals - August gold finds near term resistance at last week's high of $671.50. (Gold has made lower weekly highs for three consecutive weeks). Further resistance is at the contract high of $736.00. If August gold breaks out to new contract highs it could surge to the psychological $800 mark. Further resistance is at the 1980 high of $875.00. Near term support is at last week's multi-week low of $625.70. A break below it should take the market right down to the current major weekly Fibonacci .382 retracement at $606.60 (as measured between last year's weekly low of $410.10 and this year's current weekly high of $728.00) in confluence with a weekly gap between $605.00 and $600.00. Failure to stabilize here could result in a decline to the weekly March low of $534.50 in confluence with the current major weekly Fibonacci .618 retracement at $531.50 (as measured between last year's weekly low of $410.10 and this year's current weekly high of $728.00). Open Interest is at a nine month low. The %R overbought/oversold indicator shows that gold is nearing oversold on the daily chart. The Seasonal index shows that gold should decline in June. Commercials are holding the largest net short position in three months. Large traders (hedge funds) are holding their biggest net long position since the end of January. Small traders are holding their biggest net long position since Christmas of 2004.

July silver finds near term support at last week's two month low of $11.55. This is followed by the weekly 18-bar Moving Average that silver has not closed below since September. If silver breaks this support it could decline to the major monthly Fibonacci .382 retracement at $10.785 (as measured between the 2001 monthly low of $4.015 and this year's current monthly high of $14.97). Further support is at the psychological ten dollar mark. Near term resistance is at last week's high of $13.36. Further resistance is at the current daily Fibonacci .618 retracement at $14.01. After that July silver may test the contract high of $15.20. A break out to new highs could put silver back on track for the major monthly Fibonacci .618 retracement at $16.79 (as measured between the September 1980 reaction high of $25.00 and the 1991 multi-decade low of $3.505). Open Interest is at a one year low. The %R overbought/oversold indicator shows that silver is oversold on the daily chart. Seasonally, silver should be flat to lower in June. Commercials are holding the smallest net short position in seven months. Large traders (hedge funds) are holding the smallest net long position since mid-September. Small traders are neutral.

July copper is at a technical crossroads here. The market broke a previous week's low but did not close below it. The 9-day Moving Average closed below the 18-day Moving Average for the first time in months. If the market does not start moving higher again quickly it could start a significant price correction. Near term support is at last week's nearly one month low of 334.00 (this also happens to be the May low on the monthly continuous chart. Copper has only broken a previous month's low once in the last year) in confluence with the current intermediate weekly Fibonacci .382 retracement at 333.95 (as measured between this year's current weekly low of 201.20 and this year's current weekly high of 416.00). If this support area does not hold copper in place the market could decline to the psychological three dollar mark. Near term resistance is at the contract high of 404.00 followed by the weekly all-time high of 416.00. Further resistance is at the psychological 4.50 level. Failure to stop here should take copper right to five dollars a pound. Open Interest is at the lowest level since November of 2004. The %R overbought/oversold indicator shows that copper is still overbought on the daily, weekly, and monthly charts. Copper has a seasonal tendency to move sideways on June. Commercials are neutral on copper. Large traders (hedge funds) are neutral as well. Small traders are still neutral.

Energies - July crude oil finds near term resistance at last week's high of $72.75. A break out above it could allow the market to test the contract high of $76.30. Further technical resistance may be found at two different "A,B,C" wave projections at $79.20 and $80.05. This could be a prime area to buy some put options in anticipation of a major reversal. The first "A,B,C" wave long-term projection is on the monthly chart where wave "A" is the move from the 2001 multi-month reaction low of $16.70 up to what was then an all-time high in 2004 at $55.65. Wave "B" is the correction from this all-time high to the December 2004 reaction low of $40.25 (which was only a half-dollar below the monthly Fibonacci .382 retracement of wave "A"). Wave "C" is the move back up off of the 2004 reaction low of $40.25. In bull markets, wave "C" is usually at least the same size as wave "A". This would put a minimum target for wave "C" on the monthly chart at $79.20. The next "A,B,C" wave projection is on the weekly chart where wave "A" is the move from the weekly May 2005 reaction low of $46.20 up to was then an all-time high last year at $70.85. Wave "B" is the correction from this high on the weekly chart at $70.85 to the weekly November low of $55.40 (which was only a few ticks below a weekly Fibonacci .618 retracement of wave "A"). Wave "C" is the move back up off of the weekly November low of $55.40. In bull markets, wave "C" is usually at least the same size as wave "A". This puts a minimum target for wave "C" on the weekly chart at $80.05. Near term support is at the monthly May low of $67.55 (crude oil has made higher monthly lows for five out of the last six months). If crude oil breaks last month's low it could decline to the current intermediate weekly Fibonacci .618 retracement at $63.02 (as measured between the weekly November low of $55.40 and the current all-time high of $75.35). Further support is at the monthly 18-bar Moving Average at $60.50 (crude oil has not closed below the monthly 18-bar Moving Average since October of 2003). Open Interest pulled back just a bit from the all-time high. The %R overbought/oversold indicator shows that crude oil is still overbought on the monthly chart. The Seasonal index shows that crude oil should move sideways on June. Commercial interests are holding the biggest net short position in nearly thirteen months. Large traders are holding the biggest net long position since the beginning of April 2005. Small traders are neutral.

July Unleaded Gas finds near term resistance at last week's new contract high of 221.00. A break out above it could allow the market to test the current major weekly Fibonacci .618 retracement at 232.69 (as measured between last year's all-time weekly high of 292.00 and this year's current weekly low of 136.75). Further resistance is at the psychological 2.50 area. Near term support is at the current major daily Fibonacci .382 retracement at 197.60 (as measured between the contract low of 159.75 and the current contract high of 221.00) followed by the daily May low of 194.50. Further support is at the current major daily Fibonacci .618 retracement at 183.15 (as measured between the contract low of 159.75 and the current contract high of 221.00). After that gasoline could decline to the current major weekly Fibonacci .618 retracement at 170.65 (as measured between this year's current weekly low of 136.75 and this year's current weekly high of 225.50). Open Interest is at the lowest level since November of 2003. The %R overbought/oversold indicator shows that gasoline is nearing overbought on the weekly chart. Seasonally, gasoline should move sideways in June. Commercial interests are holding the biggest net short position since mid-February. Large traders are neutral to bullish on gasoline. Small traders are holding the biggest net long position in nine months.

July natural gas finds near term support at the current contract low of 6.050. A break below it could allow the market to test the weekly may low of 5.750. If June natural gas does not stabilize here it could decline to the 2004 low of 4.520. Near term resistance is at last week's high of 6.725 and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed below the 18-day Moving Average every day for the last month). If the market breaks a previous week's high and the 9-day Moving Average closes back above the 18-day Moving Average expect a run up to the current minor daily Fibonacci .618 retracement at 7.720 (as measured between the daily April high of 8.750 and the current contract low of 6.050). Further resistance is at the daily April high of 8.750. Open Interest reached a new all-time high again. The %R overbought/oversold indicator shows that natural gas is still oversold on the weekly and monthly charts. Natural gas has a seasonal tendency to decline in June. Commercial interests are holding the biggest net short position since September. Large traders are holding their smallest net short position since October. Small traders sold out of some of their big net long positions but they are still bullish.

Meats - August live cattle finds near term resistance at last week's three month high of 81.35. Further resistance is at the current major daily Fibonacci .618 retracement at 82.07. If the stampede does not end here this bull market could run back up to the contract high of 86.75. Near term support is at last week's low of 79.67 (August cattle has made higher weekly lows and higher weekly highs for five consecutive weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day for nearly a month). If this market breaks below a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average look for it to test the current daily Fibonacci .618 retracement at 77.12. Further support is at the contract low of 74.50. Open Interest hit a new all-time high again. The %R overbought/oversold indicator shows that cattle is overbought on the daily chart. The Seasonal index shows that cattle should decline in the first half of June and then pick up in the last part of the month. Commercial interests are holding a record size net long position. Large traders are holding the largest net short position since August. Small traders are holding the smallest net short position since September.

August feeders find near term resistance at last week's three and a half month high of 110.40. Further resistance is at the current major daily Fibonacci .786 retracement at 111.67. If the rally does not end here August feeders may visit the contract high if 114.75. Near term support is found at last week's low of 108.55 (August feeders have made higher weekly lows and higher weekly highs for five consecutive weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day for nearly a month). If this market breaks below a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average look for it to test the current major daily Fibonacci .382 retracement at 106.55. Further support is at the current major daily Fibonacci .618 retracement at 104.20. Open Interest is at the lowest level since November. The %R overbought/oversold indicator shows that feeders are overbought on the daily chart. Seasonally, feeders should move sideways thru most of June and then rally at the end of the month. Commercials are holding a near record net long position. Large traders (hedge funds) are holding the smallest net long position since August. Small traders are holding the smallest net short position since Thanksgiving.

July lean hogs find near term resistance at last week's nearly three month high of 69.00. Further resistance is at the daily March high of 69.75 or even the contract high of 70.55. If this high is exceeded the market could the weekly 2005 high of 79.85. Near term support is at the daily May low of 64.50. Further support is at the daily April low of 63.45. After that July hogs may visit the major daily Fibonacci .618 retracement at 62.10 (as measured between the contract low of 56.90 and the contract high of 70.55). Open Interest is at a new all-time high. The %R overbought/oversold indicator shows that hogs are overbought on the daily and weekly charts. Hogs have a seasonal tendency to move sideways in the first half of June and then rally in the second half of the month. Commercials are holding a new record net long position. Large traders (hedge funds) are holding a new record size net short position. Small traders are still holding their record size net short position.

Grains - July soybeans made an outside reversal up on the weekly chart when it took out the previous week's low and then reversed to take out the previous week's high. This is bullish price action. Near term resistance is at last week's high of $6.10. Further resistance is at the daily May high of $6.20. If this high is exceeded July beans should go right to the mid-February high of $6.28 in confluence with the major daily Fibonacci .382 retracement at $6.304 (as measured between the contract high of $7.36 and the contract low of $5.65). Near term support is at last week's low of $5.754. Further support is located between the daily April low of $5.682 and the daily November low of $5.65. A break below these lows could slam beans down to the weekly November low of $5.454. If beans do not stabilize here they could drop to the major double bottom on the weekly chart between the 2004 low of $5.01 and the 2005 low of $4.984. Open Interest hit a new all-time high. The %R overbought/oversold indicator shows that beans are near oversold on the monthly chart. The Seasonal index shows that soybeans should rally until late June and then decline sharply in the last week of the month. Commercial interests are holding the largest net long position in years. Large traders are holding the largest net short position since February 2005. Small traders are holding the largest net short position in thirteen months.

July soy meal exploded to a three and a half month high. Near term resistance is at last week's high of $185.90. Further resistance is at the major daily Fibonacci .382 retracement at $192.10 (as measured between the contract high of $227.00 and the contract low of $170.50) in confluence with the intermediate daily Fibonacci .618 retracement at $192.30 (as measured between the December high of $205.80 and the contract low of $170.50). After that meal could hit the psychological $200 mark. Near term support is at the daily contract low of $170.50. Further support is at the weekly October low of $162.30. A break below it could crush meal down to last year's weekly low of $148.10 or the 2004 weekly low of $146.60. Open Interest is at a new all-time high. The %R overbought/oversold indicator shows that bean meal is oversold on the monthly chart. Seasonally, soy meal should rally until late June and then decline sharply in the last week of the month. Commercials are holding the biggest net long position since February 2005. Large traders (hedge funds) are holding the biggest net short position since then. Small traders are still neutral on meal.

July bean oil finds near term resistance at last week's high of 25.77. Further resistance is at the contract high of 26.72. A break out to new contract highs could keep the market running toward the major weekly Fibonacci .618 retracement at 28.93 (as measured between the weekly 2004 high of 35.18 and last year's weekly low of 18.82). Further resistance is at the psychological 30 cent mark. Near term support is at the current major daily Fibonacci .382 retracement at 24.79 (as measured between the contract low of 21.66 and the current contract high of 26.72) followed closely by the daily May low of 24.60 (July bean oil has made higher monthly lows for four out of the last five months). Further support is at the current major daily Fibonacci .618 retracement at 23.59 (as measured between the contract low of 21.66 and the current contract high of 26.72). A break below it could allow the market to decline to the daily April low of 22.65. Open Interest hit a new all-time high. Bean oil has a seasonal tendency to decline in the first half of June and then rally in the second half of the month. Commercial interests are holding the biggest net short position in nearly two years. Large traders are holding the biggest net long position since then. Small traders are holding the biggest net long position since October.

July corn has been in an upward channel all year long. The pattern is quite evident. Near term support is at the current minor daily Fibonacci .618 retracement at $2.462 (as measured between the daily May low of $2.354 and the daily May high of $2.634) in confluence with the current major daily Fibonacci .382 retracement at $2.456 (as measured between the December contract low of $2.172 and the daily May high of $2.634). A break below it could allow the market to decline to the daily May low of $2.354 in confluence with the current major daily Fibonacci .618 retracement at $2.346 (as measured between the December contract low of $2.172 and the daily May high of $2.634). Failure to stabilize here could result in a further decline to the daily March low of $2.276 in confluence with the current major daily Fibonacci .786 retracement at $2.27 (as measured between the December contract low of $2.172 and the daily May high of $2.634). Near term resistance is at the daily May high of $2.634. Further resistance is at the contract high of $2.78 in confluence with the major weekly Fibonacci .618 retracement at $2.782 (as measured between the 2004 weekly high of $3.352 and the 2005 weekly low of $1.86). If July corn does not stall out here it may hit the psychological three dollar mark. Open Interest reached a new all-time high again. The Seasonal index shows that corn should rally until late June and then decline sharply in the last week of the month. Commercials are holding the biggest net short position since June of 2004. Large traders (hedge funds) are holding the largest net long position since March 2004. Small traders now have a record size net short position.

July rice finds near term resistance at the major weekly Fibonacci .618 retracement at 9.330 (as measured between the 2004 weekly high of 11.320 and the 2005 weekly low of 6.110) in confluence with the contract high of 9.410. Further resistance is at the psychological 10.000 area. If rice does not stop here it may run all the way to the 2004 weekly high of 11.320. Near term support is at last week's low of 8.860 (July rice has made higher weekly lows for four out of the last five weeks) and the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed above the 18-day Moving Average every day since early May). If this market breaks below a previous week's low and the 9-day Moving Average closes back below the 18-day Moving Average look for a decline to the current daily Fibonacci .618 retracement at 8.740 (as measured between the March low of 8.330 and the current contract high of 9.410). Further support is at the daily March low of 8.330. Open Interest hit a new all-time high. Seasonally, rice should decline in June. Commercial interests are holding the smallest net short position since mid-December. Large traders (hedge funds) are holding the smallest net long position since Christmas. Small traders are neutral to bullish on rice.

July oats finds near term support at last week's one month low of $1.79. Further support is at the daily March low of $1.734 or even the daily January low of $1.71. If these lows are broken the market could drop to the major weekly Fibonacci .618 retracement at $1.586 (as measured between the weekly 2004 low of $1.204 and last year's weekly high of $2.206). Near term resistance is at a gap on the daily chart between $2.00 and $2.01. If this gap is filled July oats may challenge the contract high of $2.06. A break out to new highs again could send July oats soaring to last year's weekly high of $2.206. Open Interest is at the highest level since the summer of 2000. Oats have a seasonal tendency to rally until late June and then decline sharply in the last week of the month. Commercials are holding the smallest net short position since mid-November. Large traders (hedge funds) are holding the smallest net long position since then. Small traders are the least bullish since Thanksgiving.

July wheat finds near term support at the current major daily Fibonacci .382 retracement at $3.916 (as measured between the daily December low of $3.254 and the current contract high of $4.33) in confluence with last week's low of $3.89 (July wheat has made higher weekly lows and higher weekly highs for four out of the last five weeks). A break below this support level could allow wheat to slip down to the current major daily Fibonacci .618 retracement at $3.664 (as measured between the daily December low of $3.254 and the current contract high of $4.33). After that the market may not find support until the daily March and April lows at $3.51. Near term resistance is at the current contract high of $4.33 in confluence with weekly 2002 high of $4.34. Further resistance is at the psychological five dollar mark. Open Interest hit a new all-time high. The Seasonal index shows that wheat should rally in the first half of June and then decline in the second half of the month. Commercial interests are holding the biggest net long position in three months. Large traders are holding the biggest net short position since then. Small traders are holding a new record size net short position.

Softs - July coffee made an outside reversal up on the weekly chart when it took out the previous week's low and then reversed to take out the previous week's high for the first time since mid-April. The market also closed above the 18-day Moving Average for the first time in a month. If the market can take out last week's high of 103.00 it should quickly tag the current intermediate daily Fibonacci .382 retracement at 104.50 (as measured between the daily April high of 116.40 and this year's current low of 97.10). Further resistance is at the current intermediate daily Fibonacci .618 retracement at 109.05 (as measured between the daily April high of 116.40 and this year's current low of 97.10) followed closely by the current major daily Fibonacci .382 retracement at 109.80 (as measured between the daily January high of 130.30 and this year's current low of 97.10). Near term support is at last week's new low for the year at 97.10. A break below it could keep coffee moving toward the weekly December low of 90.75. Further support is at last year's weekly low of 84.45. Open Interest is at a fourteen month high. The %R overbought/oversold indicator shows that coffee is oversold on the daily chart. Seasonally, coffee should drop sharply in June. Commercials are holding the biggest net short position since mid-February. Large traders (hedge funds) are holding the largest net long position since then. Small traders are holding the biggest net long position in nearly three months.

July cocoa finds near term resistance at last week's high of $1,502. (July cocoa has made lower weekly highs and lower weekly lows for three consecutive weeks). Further resistance is at the daily May high of $1,578. A break out above last month's high could allow cocoa to take a shot at challenging the daily January high of $1,641 in confluence with a weekly intermediate Fibonacci .618 retracement at $1,646 (as measured between the weekly 2005 high of $1,850 and the weekly 2005 low of $1,315). Near term support is at the April low of $1,434. Further support is at the contract low of $1,390. If July cocoa closes at a new contract low it could plunge to last year's weekly double bottom low at $1,315. Open Interest is at the highest level since November. Cocoa has a seasonal tendency to move higher in June. Commercial are holding the biggest net long position since mid-November. Large traders are holding the biggest net short position since then. Small traders remain neutral.

July sugar finds near term support at last week's low of 14.99. Further support is at the major weekly Fibonacci .382 retracement at 14.21 (As measured between the 2004 weekly low of 5.27 and this year's weekly high of 19.73). If the decline does not end here it could continue down to another big weekly Fibonacci .618 retracement at 12.17 (As measured between last year's weekly low of 7.50 and this year's weekly high of 19.73). Near term resistance is at last week's high of 15.99 (July sugar has made lower weekly highs and lower weekly lows for five out of the last six weeks) in confluence with the 9-day Moving Average /18-day Moving Average crossover level. (The 9-day Moving Average has closed below the 18-day Moving Average every day since early May). If the market can close above a previous week's high and the 9-day Moving Average closes strong above the 18-day Moving Average expect a quickly rally to the current major daily Fibonacci .618 retracement at 17.29 (as measured between the contract high of 18.71 and last week's low of 14.99). Further resistance is at the daily May high of 18 cents. A close above it could send the market up to the contract high of 18.71. Open Interest is flat. The %R overbought/oversold indicator shows that sugar is oversold on the daily chart. The Seasonal index shows that sugar should decline modestly in the first half of June and then recover in the second half of the month. Commercials are holding the smallest net short position since July. Large traders (hedge funds) are holding the smallest net long position since then. Small traders are holding the smallest net long position since then as well.

July orange juice finds near term support between the current intermediate daily Fibonacci .382 retracement at 146.45 (as measured between the current daily 2006 low of 116.50 and the current contract high of 165.00) and the daily May low of 144.75 (July OJ has only broken a previous month's low once in the last nine months). A break below it could send OJ down to current intermediate daily Fibonacci .618 retracement at 135.00 (as measured between the current daily 2006 low of 116.50 and the current contract high of 165.00) in confluence with the daily December high of 134.50 (old resistance). Further support is at the daily January low of 116.50. Near term resistance is at last week's high of 158.50. (July OJ has made lower weekly highs and lower weekly lows for three consecutive weeks). Further resistance is at the contract high of 165.00. If the market hits a new high it could start a run for the major monthly Fibonacci .786 retracement at 173.90 in confluence with the monthly 1991 high of 174.25. Open Interest is sitting at the lowest level since January. The %R overbought/oversold indicator shows that OJ is still near overbought on the weekly and monthly charts. Seasonally, OJ should drop for the first half of June and then recover in the second half of the month. Commercials are holding the biggest net short position since mid-December. Large traders are holding the largest net long position since then. Small traders are neutral.

July cotton may have signaled a trend change last week when it took out a previous week's high (this has only happened on other time in the last six weeks) and also closed well above the 18-day Moving Average. Near term resistance is located between the current major daily Fibonacci .382 retracement at 52.82 (as measured between the February high of 59.40 and the current contract low of 48.75) and last week's one month high of 53 cents. Further resistance is at the current major daily Fibonacci .618 retracement at 55.33 (as measured between the February high of 59.40 and the current contract low of 48.75). If the rally does not end here July cotton could challenge the huge price chart gap between 56.90 and 57.60. Near term support is at the contract low of 48.75 followed closely by the weekly April low of 48.30 and the weekly November low of 48.25. If the market continues to decline it could test the weekly August low of 46 cents. Open Interest is at a new all-time high. Cotton has a seasonal tendency to move higher in the first half of June and then decline for the rest of the month. Commercials are holding the biggest net long position since November 2004. Large traders (hedge funds) are holding a record size net short position. Small traders are neutral.