Wheat was never able to move out of its potential bull flag pattern last week and has since failed (purple circle). (News stories.)

A head and shoulders reversal pattern was able to quickly turn this market around. Bearish. (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 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 a bearish flagging patterns.) (News stories.)

The Bridge / CRB Index broke out of a nice ascending triangle in an uptrend about a month and a half or so ago. Then it broke out of a bull pennant. Now it's formed a bull flag in an uptrend. Bullish. Watch this market. It's got a lot of potential. But watch it also because 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. Recent price action has seen a quick rebound, but pay attention. (Initial readings suggest that there is a potential for an inverted head and shoulders to form which would mean a retest of the lows we saw back in April.) Don't get complacent. The big drop that was seen in late March and early April should not have come as a surprise. The move to the downside was foreshadowed in so many ways. Just take a look. Can you see the warning signs? (News stories.)

Coffee continues to be one to watch. We have been mentioning that there is no real pattern, but bullish divergence between price and strength is suggesting a tiring bear. A move through the orange circled area is bullish. (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. A move through the top of the neckline (purple circle) is bullish while continued price action below it 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 (sort of). A move through the top of the pattern though, should get this thing going, while a move with impunity through the bottom, should send it even lower. (Opinions notwithstanding, do what the pattern says.) Again, a break through the bottom is bearish, while a break through the top is bullish! (News stories.)

SOYBEANS

(July '00) Daily

Bearish price and strength divergence was apparent about a month and a half or so ago. The breaking of the long term trendline support a few weeks ago and 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. 

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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.)

FEEDER CATTLE

 (August '00) Daily

A potential rising wedge the other week (black lines) which then took the shape of a bear flag (red lines) went too far to be considered an in-play pattern. However, until the market is able to eclipse the top of the previous descending triangle, the market still has bearish implications in my opinion. But I would look for more price action for direction. (News stories.)