(FROM SAT., 6/10/00)

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(LAST UPDATED ON SUNDAY, JUNE 18, 2000)

Platinum is a new one this week. A head and shoulders reversal patterns suggests the bull run has finally run out of steam. (News stories.)

The Swiss franc is also a new one this week. A small triangle in a new uptrend should continue the move higher. (News stories.)

The British pound, also a new one, has a bullish pennant formation. This should (technically speaking) send prices higher. (News stories.)

A head and shoulders reversal pattern was able to quickly turn this market around. However, it looks as if the near term downside objective has been met. A move up through the neckline should erase any immediate bearishness. (News stories.)

The Dow Jones Industrial Average has a descending triangle pattern in a downtrend. Volume picked up on its recent move lower and diminished on its move up (bearish divergence). Watch this one. It should stay beneath the horizontal red hashed line if it's bearish. (News stories.)

The pork bellies, after a retreat from recent highs, formed a bear flag in a downtrend (bearish) and then another bear flag (bearish). (Notice the Relative Strength Index (RSI) also formed bearish flagging patterns.) (News stories.)

The Bridge / CRB Index broke out of a nice ascending triangle in an uptrend a little over a month and a half or so ago. Then it broke out of a bull pennant. It recently formed a bull flag in an uptrend, however, it has been unable to break out to the upside. A move through the top of the flag and up through the horizontal red hashed line would be bullish, but its current reading suggests a bit more downside. Watch this market though. It's a great barometer for what commodity prices are doing in general. (It has long been used as a general inflationary indicator.) (To learn more about the CRB Index, just e-mail us at: CRBIndex@chartpatterns.com.) (News stories.)

The Nasdaq 100, after collapsing through long term trendline support about 2 months ago, also broke out of a bear flag in a downtrend about a month or so ago. Prices then saw a quick rebound, but pay attention. (Last week's initial readings suggested that there was a potential for an inverted head and shoulders to form which would mean a retest of the lows we saw back in April. However, recent price action has seen a bull flag pattern take shape as well as a minor breakout too.) Don't get complacent though. A good move above the top of the flag is bullish, but a failure keeps the potential inverted head and shoulders still in play. The purple circle with hashed lines in it shows the potential downside area if an inverted head and shoulders were to unfold. Be alert. (News stories.)

A head and shoulders reversal pattern originally set the yen's dump in motion. A falling wedge took some of the immediate bearishness off the market as it headed for a typical return move to the underside of the broken neckline. Recent activity has produced a bear flag formation. A move through the top of the neckline (purple circle) is bullish while a breakout through the bottom of the flag is bearish. (News stories.)

Orange juice looks interesting and still looks to be forming a base in my opinion. There appears to be a big rectangular trading range that continues to confine the market. Recent price action inside the rectangle suggests the market favoring a move to the upside. In fact, the Relative Strength Index (RSI) has nearly broken out to the upside. (Bullish foreshadowing?) A move through the top of the pattern should get this thing going, while a move with impunity through the bottom, should send it lower. The implications at the moment however lean toward an upside breakout. (News stories.)

(July '00) Daily

Bearish price and strength divergence was apparent for a while prior to the breaking of the long term trendline support last month. The return move and subsequent turn-away shortly thereafter, foreshadowed the resulting failure. But don't forget the big picture. See the weekly chart below. 

SOYBEANS / Nearest Future Chart (July '00) Weekly

Here's a look at the weekly chart. While the daily seems less than bullish, the 'big picture' sees an inverted head and shoulders breakout (followed by a bullish pennant breakout) with a typical return move to the neckline taking place. This chart looks very bullish if you believe that the recent dump is nothing more than a return move to the original breakout point. (The size of the pattern suggests the bullishness isn't yet over.) (News stories.)

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