LIVESTOCK: April live cattle closed down $0.77 at $142.90 Thursday. Prices closed near the session low and showed follow-through weakness from Wednesday’s strong losses that produced a bearish “key reversal” down on the daily bar chart. That is an early technical clue that a market top is in place. Profit taking was featured again today. Bulls still have the overall near-term technical advantage but are fading. A bearish weekly low close on Friday would be a stronger clue that a market top is in place. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at Wednesday’s contract high of $146.65. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $141.00. First resistance is seen at today’s high of $143.60 and then at $144.00. First support is seen at today’s low of $142.80 and then at $142.00. Wyckoff’s Market Rating: 6.5
May feeder cattle closed down $1.27 at $173.42 Thursday. More profit taking was featured. Prices Wednesday scored a bearish “outside day” down on the daily bar chart. There was good follow-through selling pressure on Thursday and a more significantly bearish “key reversal” down on the daily bar chart was confirmed. That is one early technical clue that a market top is in place. The feeder bulls do still have the overall near-term technical advantage. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at Wednesday’s contract high of $176.20. The next downside price breakout objective for the bears is to push and close prices below solid technical support at last week’s low of $172.00. First resistance is seen at $174.00 and then at $174.50. First support is seen at $173.00 and then at $172.50. Wyckoff’s Market Rating: 7.0
April lean hogs closed up $1.97 at $112.70 Thursday. Prices closed nearer the session high and closed at a fresh contract and all-time record high close today. This market has gone parabolic, which suggests, from a time perspective, that a market top is close at hand. There are still very bullish cash hog market fundamentals at work, including a pig disease in the U.S. and strong consumer demand. Hog futures bulls have the solid overall near-term technical advantage. Prices are in a very steep seven-week-old uptrend on the daily bar chart. This week’s price action could produce a blow-off spike top in the hog futures market soon. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at Wednesday’s contract high of $114.67. The next downside price breakout objective for the bears is pushing prices below solid technical support at $107.00. First resistance is seen at $113.00 and then at $113.50. First support is seen at today’s low of $111.60 and then at $111.00. Wyckoff’s Market Rating: 9.0
