David Fuller's view Let's start with a look at those "Babylonian" low interest rates described by Peter Tasker in the excerpt above, using their inverse mirror images shown by futures prices.

German Bund futures ran into stiff resistance near their early-June highs, forming a downside weekly key reversal in late July. Following those bearish signals, including the first lower high for many months, a critical test of potential support near 140 now beckons and it may be found wanting.

Looking at these daily charts for UK gilts (large gap created by coupon change), Swiss, Australian, Canadian and US 10-Yr Bonds, plus JGBs, have all lost momentum recently and seen some downward dynamics following overextended rallies. Tops of at least short-term, probably medium-term and possibly long-term significance have been seen. If so, upward scope will now be limited to top formation extension prior to further weakness. Closes in new high ground by several of these instruments are now required to question this hypothesis.

Soybeans, corn and wheat lose upside momentum near previous resistance (see earlier reviews or weekly charts in Library). This is not surprising considering the speed and extent of recent advances. However, given the crop damage that has occurred in the USA and some other major growing regions, it is too soon to conclude that top formations are developing. Meanwhile, new closing highs are required to signal some additional upside scope.