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The S&P 500 seemed to pick up downside speed, once Wheat futures broke support back in 2008 at (1) in the chart above.
Now Wheat is breaking support at (3). Would a breakdown in grains impact the stock market in this time around?
What does a grain chart look like these day? Any chance they look like the charts below, which was yesterdays quiz? (see what an opportunity here)
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The patterns above suggest about a 65% chance of these products falling in price…. Wheat and Corn fell almost 4% yesterday, not a bad day for those scoring on defense in these areas!!!
If they do break to the downside, I suspect they will impact the stock market…..again! Keep a close eye on the grains for more macro clues.