February live cattle closed up $2.10 at $87.60 yesterday. Prices gapped higher on the daily bar chart and closed near the session high yesterday. A bullish USDA cattle-on-feed report issued Friday afternoon and bullish “outside markets” boosted cattle yesterday. However, yesterday’s gains were still just short covering in a bear market and the bulls have more heavy lifting to do to gain solid upside technical momentum to suggest a market low is in place. The cattle bears still have the overall near-term technical advantage. Prices are still trading below a five- month-old downtrend line on the daily bar chart. Bulls’ next upside price objective is to push prices above solid technical resistance at $90.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at the contract low of $83.80. First resistance is seen at $88.00 and then at $88.50. First support is seen at yesterday’s low of $86.95 and then at $86.50.

Wyckoff’s Market Rating: 2.0


March feeder cattle closed up $2.00 at $92.15 yesterday. Prices closed near the session high yesterday. Short covering in a bear market was featured yesterday amid bullish “outside markets.” Bears still have the solid near-term technical advantage. The next upside price objective for the feeder bulls is to push prices above solid technical resistance at $94.00. The next downside price objective for the bears is to produce a close below solid technical support at the contract low of $88.10. First resistance is seen at $92.50 and then at $93.00. First support is seen at $91.75 and then at yesterday’s low of $91.25.

Wyckoff’s Market Rating: 2.0

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Source: VantagePoint Intermarket Analysis Software


February lean hogs closed up $0.65 at $64.75 yesterday. Prices closed near the session low but did hit a fresh four-week high yesterday. Short covering and bargain hunting buying was featured amid the bullish “outside markets” yesterday. Bulls have regained some fresh upside near-term technical momentum to suggest a near-term low is in place. A bullish head-and-shoulders bottom reversal pattern may be forming on the daily chart. The next upside price objective for the bulls is to push prices above solid chart resistance at $66.00. The next downside price objective for the bears is pushing prices and closing below solid technical support at last week’s low of $61.65. First resistance is seen at $65.35 and then at $66.00. First support is seen at $64.50 and then at $64.00.

Wyckoff’s Market Rating: 3.5


February pork bellies closed up $1.80 at $92.10 yesterday. Prices gapped higher on the daily bar chart and hit a fresh six-week high. The bulls have quickly gained solid upside near-term technical momentum to suggest a market low is in place. The next upside price objective for the bulls is pushing prices above solid technical resistanceat $94.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $87.60. First resistance is seen at $92.50 and then at $93.00. First support is seen at $91.30 and then at yesterday’s low of $90.60.

Wyckoff’s Market Rating: 5.0