LIVE CATTLE:  Dec

Yesterday's rally in the December live cattle reached up into an area that is close to meeting the .382 fib retracement that I discussed yesterday.  If the market struggles to push through yesterday's closing highs then I would expect that the market will turn back lower.  A break of $83.45 would be the key point that would indicate that the market wants to trade lower.  Below $83.45 expect $82.65, in which a close below $83.45 eventually leads to $81.82.  On the upside trade that holds above $83.85 would be supported for a bounce that could reach $84.57 today.  A close above $84.57 would be considered friendly. 

Support: 83.45 & 82.65       Resistance: 84.15 & 84.55      Long Term Trend: Down below $84.57      Short Term Trend: Down below 83.87

FEEDER CATTLE:   Jan

Feeder cattle were able to finally close out a day in positive territory, all be it, not by much.  Today above $92.65 the market remains stable with corrections reaching $93.27 and possibly $93.72.  On the downside breaking $92.30 could lead to secondary selling that takes the market down to $91.87.  A daily close below $92.30 would be considered bearish as the market would resume its downtrend.  Again, the feeder market is in a health downtrend and at this time all rallies are considered corrections.                                                         

Support:  92.65 & 92.30      Resistance:  93.27 & 93.72      Long Term Trend: Down below 94.77       Short Term Trend: Down below 93.77

CORN:   Dec

The corn market continues to grind higher reaching new highs for this move up.  Dips should again be supported at 402 today in the dec contract.  Below 402 the next support is 399.  The market should work up to the old highs at 413 before any sort of a larger correction occurs.  At this time only a close below 393 would be considered slightly negative and a warning that the market may want to pull back further.  A close above the old high, and the market will then be expected to test 425. 

Support: 402, 399, & 393     Resistance: 409, 413, & 419       Long Term Trend: Up above 393      Short Term Trend: Up above 394

Hogs:  Feb

Feb hogs grabbed a gear once it traded above $62.62 yesterday and closed above daily resistance at $63.60.  After the big rally a pull back into an area of support from $63.50-63.30 is possible, but as long as the market stays above this level on a closing basis it can move higher.  Breaking below this area would then be considered slightly bearish for a larger correction back down $62.60. Only a close back below $62.50 turns the market bearish longer term.  

Support: 63.80 & 63.30      Resistance: 64.57 & 64.85      Long Term Trend: Up above 62.62      Short Term Trend: Up above 63.70

Brock Thompson Trading, 2525 Lakeview Dr. Amarillo, TX 79109, brock@brockthompsontrading.com (806)-350-2400

Make note that intra-day support and resistance prices change throughout the day, so if you have any questions during market hours please give me a call for an update.    

These forecasts are solely the opinion of the author and make no representation as to how the market will actually trade.  There is substantial risk of loss in trading futures and options; therefore you should carefully consider whether trading is appropriate for you in the light of your financial situation.