The cotton market made a new 2 month low as the stock market set a new 17-month high. The USD was strong again today and has found good down side support on rumors of earlier unwinding of Fed policies used to support the bond market. The momentum has turned from the 4th quarter buying dips to now more of selling rallies in the first quarter. Volume was average at 13k, but open interest has come off slightly.

Specs actually increased their long position last week to 14.6% as seen on page 2. Technically, the market continues to look for support which has not been found and looking at the chart there is not any significant resistance until we approach 70 cents based H'10. This is also the level where Z'10 went off the board at 70.30 so this will be an important level to hold in order to refresh the bulls for another run.