by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER LIVE CATTLE

December live cattle closed up $0.60 at $100.77 today. Prices gapped higher on the daily bar chart, hit a fresh three-week high and closed near mid-range today. This follows a bullish weekly high close on Friday. There are now ideas the cash cattle market has put in a bottom after surprisingly higher cash trade that occurred late last week. Last Friday afternoon’s USDA cattle-on-feed report was deemed mostly neutral. Notions of a double-top reversal pattern forming on the daily chart have been dashed with recent price strength. The next downside objective for the bears is closing prices below solid support at $99.00. Bulls’ next upside price objective is to close prices above solid chart resistance at the contract high of $101.45. First resistance is seen at today’s high of $101.10 and then at $101.45. First support is seen at today’s low of $100.40 and then at $100.25.

Wyckoff’s Market Rating: 8.0.

OCTOBER FEEDER CATTLE

October feeder cattle closed up $0.05 at $116.25 today. Prices closed nearer the session low. Bulls still have the overall near-term technical advantage. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $117.35. The next downside price objective for the bears is to produce a close below solid support at last week’s low of $115.00. First resistance is seen at today’s high of $116.70 and then at $117.00. First support is seen at today’s low of $115.95 and then at $115.50.

Wyckoff’s Market Rating: 6.5


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Source: VantagePoint Intermarket Analysis Software

DECEMBER LEAN HOGS

December lean hogs closed down $0.47 at $63.32 today. Prices closed nearer the session low today and hit a fresh 10-week low. Bears have gained solid downside technical momentum recently. A six-week-old downtrend line is in place on the daily bar chart. Bears would gain some better downside technical momentum by producing a close below solid support at the May low of $62.65. Still, I’ve noticed that when technicals start to turn significantly bearish in hogs, such as is the case now, that’s when heavy fund buying seems to steps into the market to send prices solidly higher. The next upside price objective for the bulls is closing prices above solid chart resistance at $65.00. First resistance is seen at today’s high of $64.00 and then at $64.67. First support is seen at today’s low of $63.10 and then at $62.65.

Wyckoff’s Market Rating: 3.0.

FEBRUARY PORK BELLIES

February pork bellies closed up $0.80 at $87.50 today. Prices closed near the session high on short covering in a bear market. Prices hit a fresh contract low on Friday. The bears still have the solid near-term technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at $90.00. 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 $88.00 and then at $89.00. First support is seen at $87.00 and then at $86.25.

Wyckoff’s Market Rating: 1.5

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Source: VantagePoint Intermarket Analysis Software