by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER LIVE CATTLE

December live cattle closed up $1.07 at $95.80 today. Prices closed near the session high today on short covering and fresh fund speculative buying. Improving cash cattle market fundamentals lifted the futures today, too. It does appear that the bears became exhausted at lower price levels. But prices are still in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to close prices above solid chart resistance at $96.50. The next downside technical objective for the bears is closing prices below solid support at last week’s low of $93.80. First resistance is seen at $96.00 and then at $96.50. First support is seen at $95.55 and then at $95.00.

Wyckoff’s Market Rating: 5.0.

JANUARY FEEDER CATTLE

January feeder cattle closed up $1.15 at $109.07 today. Prices closed near the session high on short covering and on improving cash cattle market fundamentals. Prices are still in a two-month-old downtrend from the September contract high. Bears still have the near-term technical advantage. The next downside price objective for the bears is to produce a close below solid support at last week’s low of $107.60. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $110.00. First resistance is seen at $109.40 and then at $110.00. First support is seen at $108.40 and then at $108.00.

Wyckoff’s Market Rating: 4.0

DECEMBER LEAN HOGS

December lean hogs closed down $0.40 at $52.02 today. Prices closed near mid-range today in quieter trading. Prices did hit another fresh contract low today. The bears still have the solid technical advantage amid weaker cash hog prices to start the week and amid no technical clues of a market bottom in futures being close at hand. A steep 2.5-month-old downtrend line is still in place on the daily bar chart. The next downside price objective for the bears is closing prices below technical support at $50.00. The next upside price objective for the bulls is closing prices above solid chart resistance at $54.00. First resistance is seen at $53.00 and then at $53.50. First support is seen today’s contract low of $51.75 and then at $51.00.

Wyckoff’s Market Rating: 1.0.


FEBRUARY PORK BELLIES

February pork bellies closed down $0.45 at $84.25 today. Prices closed near the session low after hitting a fresh three-week high early on. The bears still have the overall near-term technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at today’s high of $86.60. The next downside price objective for the bears is closing prices below solid chart support at $81.50. First resistance is seen at $85.00 and then at $86.00. First support is seen at $84.00 and then at $83.00.

Wyckoff’s Market Rating: 2.5