The most important levels in markets are those that are clearly visible to all market participants. The July pivot high in Soybeans is a good example of an important level to watch. A failure test (think 2B short entry) at this level would present a serious challenge to the integrity of the uptrend in grains, but heavy long exposure is virtually required by the current market structure. Use this potential setup not so much as a trade entry (for perhaps longs would only choose to reduce exposure incrementally into the failure test), but as an analytical tool for assessing the strength of the trend. A strong uptrend should not show a failure test here.
