Europeans did not like failure of the Republican plan B to end the fiscal cliff. March has been top step for a bit, so I am switching from Dec to March. Yesterday’s high was 13,270. Yesterday I wrote that I wanted to be a seller of rallies, with a safety parachute in the form of tight buy stops.
Assuming you had a short position, you should have awoken to a nice profit in your account. Overnight we broke, 300 points from high to low. the low tick was 12,963 so we took out the 13,000 mark by 37 ticks. Currently we are at 13,140, about 180 points off the low. You should take profits on some of your position and leave buy stops on the rest of the position.
Technically, from the November 16th low to the high on Wednesday, that’s a 938 pt. rally Today’s low 12,961 was the 38% retracement of that move.
Next support is 12,850 which is 1/2 way back. Below that, 12,740.
As for the grains, we had a good sell off. I’d stay away or look to buy dips. I think we got a little oversold in the past 3 trading days.