Sugar Drop
The Low set in Sugar this morning at 27.55 established the completion of a five waves down move. The 50% retracement from yesterday’s high at 28.95 became 28.25. The high so far today is 28.35 where sellers came in strong. The market may not set a new low for today, but Monday’s Open will be interesting. I hate to be in a market over a weekend and so we say goodbye to the move. (A drop to 26.08 would be a 1.618 multiple of the wave one [28.95 - 27.55] completion.)
There is little (but still some, because this could just as easily set up a run at a new High) doubt that the signals developed in candlesticks, e-wave, MACD and RSI supported a down move. If this works out to be the top in Sugar, we will have ample opportunities to enter on the downside. With the completion of this move, the market could find itself back at another larger 2 position and ready for a major drop into the single digit numbers. Price action has yet to declare the top is in, but today’s action turned the Short Term light red. In just one and a half trading sessions, Sugar went from a new 52 week high to a red light. Amazing!
