We’re not saying that soybean futures peaked Tuesday, and we don’t know what fundamental sent them to a new record high of 13.73 a bushel, March contract (other than panic buying in wheat, primarily the Minneapolis contract for spring wheat that is still in competition for acres with corn and soybeans this year). But when traders rejected the higher price levels and closed the market lower, it left what appears to be a shooting star on a candlestick chart (or a key reversal on a bar chart).
Maybe soybean prices aren’t ready to sink yet, but note on the chart what happened after the last prominent shooting star on Jan. 14. VantagePoint charts based on intermarket analysis data show several signs of at least a temporary top: (1) the predicted short-term difference crossed below the predicted long-term difference, a sign of a weakening trend, and (2) the predicted neural index dropped to 0.0, an indication that the short-term trend will be lower.
The last shooting star didn’t start a bear market but a $1.52 a bushel decline from the high at $13.41 1/2 on Jan. 14 to the low at $11.89 1/2 six trading days later left a lot of room for a short-term trader to make a nice profit on the short side.
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