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- Technically, it looks like some aspects of the soybean market have put in a bottom based on reversal patterns on weekly and possibly monthly charts.
- However, the three key reads on real market fundamentals don't agree, continuing to show a bearish at worst to neutral at best situation.
- How do we break the tie in the two opinions? By applying Newsom's Market Rule #6.
Has the soybean market bottomed? That seems to be the hot question as we head into another weekend. Of course, the talking heads who say everything is always bullish have responded to the query with a resounding “Yes!”. Unfortunately, this gives me more doubt to the idea of nothing but blue sky ahead and creates a more likely ‘Dead Cat Bounce’ scenario. Those squawking the loudest about nothing but rainbows and lollipops in the market’s futures are looking at it from a technical point of view. I can see this argument based on intermediate-term and even long-term charts. Mostly. But there is a lot that can still happen in March.
