by Jim Wyckoff, Senior Analyst, TraderPlanet.com

DECEMBER LIVE CATTLE

December live cattle closed down $1.65 at $88.40 yesterday. Prices closed near the session low and hit a fresh three-week low yesterday. The bears have the overall near-term technical advantage and gained more downside momentum yesterday amid a weaker U.S. stock market and economic recession concerns. Prices are still trading below a four- month-old downtrend line on the daily bar chart. Bulls’ next upside price objective is to push prices above solid technical resistance at $92.55, which is the top of a downside price gap on the daily chart. The next downside technical objective for the bears is pushing and closing prices below solid technical support at the contract low of $87.10. First resistance is seen at $89.00 and then at $89.50. First support is seen at yesterday’s low of $88.00 and then at $87.50.

Wyckoff’s Market Rating: 1.0

MARCH FEEDER CATTLE

March feeder cattle closed down $1.62 at $94.30 yesterday. Prices closed nearer the low yesterday and hit a fresh three- week low. Prices are right back down near the contract low.Bears have the near-term technical advantage and gained more power yesterday. The next upside price objective for the feeder bulls is to push prices above solid technical resistance at $98.00. The next downside price objective for the bears is to produce a close below solid technical support at the contract low of $93.70. First resistance is seen at $95.00 and then at $95.50. First support is seen at yesterday’s low of $93.95 and then at $93.70.

Wyckoff’s Market Rating: 1.0

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Source: VantagePoint Intermarket Analysis Software

DECEMBER LEAN HOGS

December lean hogs closed down $0.22 at $55.35 yesterday. Prices closed near mid-range in quiet trading. Hog bears still have the near-term technical advantage. Prices are still in a 3.5-month-old downtrend on the daily bar chart. There are still no clues of a market low being close at hand. The next upside price objective for the bulls is to push prices above solid chart resistance at $57.40, which would fill on the upside a downside price gap on the daily chart. The next downside price objective for the bears is pushing prices and closing below solid technical support at the contract low of $53.90. First resistance is seen at yesterday’s high of $55.75 and then at $56.00. First support is seen at yesterday’s low of $55.17 and then at $55.00.

Wyckoff’s Market Rating: 2.0

FEBRUARY PORK BELLIES

February pork bellies closed down $0.90 at $84.40 yesterday. Prices closed near mid-range again yesterday and scored a bearish “outside day” down on the daily bar chart. Bears still have the solid near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is pushing prices above solid technical resistance at last week’s high of $86.50. The next downside price objective for the bears is pushing and closing prices below solid technical support at the contract low of $82.82. First resistance is seen at $85.00 and then at yesterday’s high of $86.00. First support is seen at $84.00 and then at yesterday’s low of $83.25.

Wyckoff’s Market Rating:
1.0