So, I've been kinda seeing this for a bit now but haven't really known how to tie it together. For the last few weeks there have been pendants forming/formed in a wide range of markets. Copper, silver,gold (sorta), Heating Oil (though it's since broken higher), RBOB (gasoline, also broke higher awhile ago), DX (pushing very hard on support today), 30 year t-bond and 10 year t-bill (though both broke lower), soybeans X3, MW H3 and U3, corn h3 and z3.

conspicuously absent from that list- nymex crude, Euro-dollar, Brazilian Real, SP 500, $vix....

It's worth noting the Vix is low right now, and I've been hearing in the biz-news for the last few weeks that "correlations are rapidly breaking down", kind of a continuation of what was going on in Dec.

There has been a lot of consolidation the last few weeks, low volatility..... I wonder if we are coming to the end of that consolidation phase. DX kinda looks like it's finally cornered and has to make a choice which way it's going to break.... and everything else seems to key off that a bit. Tough to say if treasuries are still a functioning market or not, but if they are.... they are tipping their hand slightly to a lower DX bias. Certainly crude and to some extent copper seem to think that way too.....

...... I wonder if it's possible that last night's quick uptick in grains was the first crack in the dam, showing us how much energy is actually stored right now, ready to come out. Consider this 5-min Euro-Dollar versus Soybean chart.

I'm not saying the news of weather concerns down south aren't valid, But I don't think the quick move last night was instigated by anything production related. I think we are getting ready to head into a macro-dominated trading environment.... 

Also worth noting, while most of the other charts have already started to try to move out of their pendants.... grains are just beginning, starting with soybeans.  

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eurqbschart.png (19KB - 45 downloads)