by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER LIVE CATTLE

December live cattle closed up $0.12 at $96.25 yesterday. Prices closed nearer the session low yesterday on tepid short covering after hitting another fresh three- month low on Friday. Bears still have downside technical momentum as a bearish head-and-shoulders top formation has developed and played out on the daily bar chart. Cash cattle trading last Friday took place at sharply lower levels. The next downside objective for the bears is closing prices below solid support at $95.00. Bulls’ next upside price objective is to close prices above solid chart resistance at $97.50. First resistance is seen at yesterday’s high of $96.70 and then at $97.00. First support is seen at yesterday’s and last week’s low of $96.10 and then at $95.50.

Wyckoff’s Market Rating: 4.0.

NOVEMBER FEEDER CATTLE

November feeder cattle closed up $0.40 at $113.90 yesterday. Prices closed near the session high yesterday after hitting a fresh three-month low early on. Tepid short covering was seen yesterday. The bears still have some downside technical momentum. Prices are still in a four-week-old downtrend from the September contract high. The next downside price objective for the bears is to produce a close below solid support at $112.00. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $115.00. First resistance is seen at yesterday’s high of $114.00 and then at $114.70. First support is seen at yesterday’s low of $113.30 and then at $113.00.

Wyckoff’s Market Rating: 4.5

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Source: VantagePoint Intermarket Analysis Software

DECEMBER LEAN HOGS

December lean hogs closed down $0.82 at $59.47 yesterday. Prices closed near the session low. Serious near-term chart damage has been inflicted recently. Bears still have the technical advantage amid still-weak cash market fundamentals. A steep two-month-old downtrend line is still in place on the daily bar chart. The recent “pause” in the market is not bullish and does suggest more downside price potential in the near term. The next downside price objective for the bears is closing prices below support at last week’s low of $59.25. The next upside price objective for the bulls is closing prices above solid chart resistance at $62.02, which is the top of last week’s big downside price gap on the daily bar chart. First resistance is seen at $60.00 and then at yesterday’s high of $60.50. First support is seen at yesterday’s low of $59.40 and then at $59.25.

Wyckoff’s Market Rating: 2.0.

FEBRUARY PORK BELLIES

February pork bellies closed down $0.42 at $87.00 yesterday. Prices closed near the session low. The bears still have the near-term technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at $91.00. The next downside price objective for the bears is closing prices below solid chart support at the contract low of $84.85. First resistance is seen at yesterday’s high of $88.20 and then at $88.50. First support is seen at last week’s low of $86.20 and then at $84.85.

Wyckoff’s Market Rating: 2.0

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Source: VantagePoint Intermarket Analysis Software