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Pro Farmer Tech Talk

RSS By: Jim Wyckoff, Pro Farmer

Pro Farmer technical analyst Jim Wyckoff's daily thoughts.

Jim's Afternoon Markets Report--Feb. 21

Feb 22, 2013

Thursday Evening, February 21-Jim Wyckoff's Daily Markets
Update

Questions? Just email me at jim@jimwyckoff.com . I enjoy
hearing from my readers worldwide.--Jim

Click below for "Today’s Hot Market" item on my website.

http://www.jimwyckoff.com/hotmarket/hotmarket.asp

Dear Valued Subscriber: Following are today's significant
developments in the U.S. futures markets.

*. LIVESTOCK: April live cattle closed down $0.42 at
$127.80 today. Prices closed nearer the session low today
and closed at a fresh 9.5-month low close. The key “outside
markets” were bearish for cattle again today, as the U.S.
dollar index was higher and crude oil prices were solidly
lower. Cattle futures bears have the solid overall near-
term technical advantage and gained fresh downside momentum
this week. Prices are in a two-month-old downtrend on the
daily bar chart. The bulls' next upside price breakout
objective is to push and close prices above solid technical
resistance at $130.55. The next downside technical breakout
objective for the bears is pushing and closing prices below
solid technical support at the contract low of $125.90.
First resistance is seen at today’s high of $128.35 and
then at $129.00. First support is seen at this week’s low
of $127.50 and then at $127.00. Wyckoff's Market Rating:
2.0

April feeder cattle closed down $0.45 at $143.15 today.
Prices closed near the session low today and hit another
fresh contract low. The feeder bears have the solid near-
term technical advantage and have gained fresh downside
momentum this week. The next upside price breakout
objective for the feeder bulls is to push and close prices
above solid technical resistance at $146.00. The next
downside price breakout objective for the bears is to push
and close prices below solid technical support at $142.00.
First resistance is seen at today’s high of $144.10 and
then at $145.00. First support is seen at today’s contract
low of $143.15 and then at 142.50. Wyckoff's Market Rating:
1.0

April lean hogs closed down $0.55 at $82.40 today. Prices
closed nearer the session low today and closed at a fresh
8.5-month low close. The key “outside markets” were again
bearish for hogs today—the U.S. dollar index was higher and
crude oil prices were solidly lower. The hog bears have the
solid overall near-term technical advantage. A choppy
three-month-old downtrend is in place on the daily bar
chart. The next upside price breakout objective for the hog
bulls is to push and close prices above solid chart
resistance at $85.00. The next downside price breakout
objective for the bears is pushing prices below solid
technical support at $82.00. First resistance is seen at
today’s high of $82.95 and then at $83.50. First support is
seen at this week’s low of $82.12 and then at $82.00.
Wyckoff's Market Rating: 2.0

*. GRAINS: May corn futures last traded down 8 1/2 cents at
$6.87 3/4 today in late trading. Prices were nearer the
session high today and hit a fresh six-week low. The key
“outside markets” were bearish for corn today—the U.S.
dollar index was higher and crude oil prices were solidly
lower. Corn bears have the near-term technical advantage
and gained some fresh downside momentum today. Corn bulls'
next upside price objective is to push and close prices
above solid technical resistance at $7.10. The next
downside price breakout objective for the bears is pushing
and closing prices below solid technical support at the
January low of $6.78 1/2. First resistance for May corn is
seen at today’s high of $6.96 1/4 and then at $7.00. First
support is seen at today’s low of $6.84 3/4 and then at
$6.78 1/2. Wyckoff's Market Rating: 3.0

May soybeans were up 3 1/4 cents at $14.71 3/4 a bushel in
late trading today. Prices were nearer the session high
today and saw more short covering and bargain hunting. The
key “outside markets” were fully bearish for soybeans again
today--the U.S. dollar index was sharply higher and crude
oil prices were sharply lower. That did limit the upside in
beans today. Bean bulls have the slight near-term technical
advantage. The next near-term upside technical breakout
objective for the soybean bulls is pushing and closing
prices above psychological resistance at $15.00 a bushel.
The next downside price breakout objective for the bears is
pushing and closing prices below solid technical support at
last week’s low of $13.93 1/2. First resistance is seen at
this week’s high of $14.77 and then at the February high of
$14.89 1/2. First support is seen at today’s low of $14.54
and then at $14.46 3/4. Wyckoff's Market Rating: 5.5.

May soybean meal was up $2.30 at $435.20 today in late
trading. Prices were nearer the daily high and hit a fresh
two-week high today. Bulls have the slight near-term
technical advantage. However, there is some stiff overhead
resistance just above present prices. The next upside price
breakout objective for the bulls is to produce a close
above solid technical resistance at the February high of
$438.60. The next downside price breakout objective for the
bears is pushing and closing prices below solid technical
support at $420.00. First resistance comes in at today’s
high of $437.50 and then at $438.60. First support is seen
at $430.00 and then at today’s low of $427.70. Wyckoff's
Market Rating: 5.5

May bean oil was down 65 points at 51.75 cents in late
trading today. Prices were nearer the session low. The key
“outside markets” were again bearish for bean oil today—the
U.S. dollar index was higher and crude oil prices were
solidly lower. Bean oil bears now have the slight near-term
technical advantage. The next upside price breakout
objective for the bean oil bulls is pushing and closing
prices above solid technical resistance at the February
high of 53.98 cents. Bean oil bears' next downside
technical price breakout objective is pushing and closing
prices below solid technical support at last week’s low of
51.00 cents. First resistance is seen at 52.00 cents and
then at today’s high of 52.35 cents. First support is seen
at today’s low of 51.53 cents and then at 51.25 cents.
Wyckoff's Market Rating: 4.5

May Chicago SRW wheat was down 17 3/4 cents at $7.27 1/2 in
late trading today. Prices were nearer the session low and
hit a fresh eight-month low today. The key “outside
markets” were bearish for wheat today—the U.S. dollar index
was higher and crude oil prices were solidly lower. Prices
are in a four-week-old downtrend on the daily bar chart.
Wheat bears have the solid overall near-term technical
advantage and gained more downside momentum today. Wheat
bulls’ next upside breakout objective is to push and close
Chicago SRW prices above solid technical resistance at this
week’s high of $7.52 1/2 a bushel. The next downside price
breakout objective for the wheat futures bears is pushing
and closing prices below solid technical support at $7.00.
First resistance is seen at $7.35 and then at $7.40. First
support lies at today’s low of $7.22 3/4 and then at $7.15.
Wyckoff's Market Rating: 2.5.

May HRW wheat was down 14 3/4 cents at $7.72 3/4 in late
trading today. Prices were nearer the session low and hit a
fresh eight-month low today. HRW bears have the solid
overall near-term technical advantage. Bulls’ next upside
price breakout objective is pushing and closing prices
above solid technical resistance at $8.00. The bears' next
downside breakout objective is pushing and closing prices
below solid technical support at $7.50. First resistance is
seen at $7.80 and then at today’s high of $7.87. First
support is seen at today’s low of $7.68 3/4 and then at
$7.60. Wyckoff's Market Rating: 2.5

May oats were down 1 1/2 cents at $3.87 in late trading
today. Prices were near mid-range and seeing some mild
profit taking. Oats bulls still have the near-term
technical advantage. Bears' next downside price breakout
objective is pushing and closing prices below solid
technical support at $3.75. Bulls' next upside price
breakout objective is pushing and closing prices above
solid technical resistance at $4.00. First support lies at
today’s low of $3.84 1/4 and then at this week’s low of
$3.79. First resistance is seen at today’s high of $3.90
3/4 and then at this week’s high of $3.93 1/2. Wyckoff's
Market Rating: 7.0

*. SOFTS: May sugar closed down 21 points at 17.92 cents
today. Prices closed near mid-range today. The key “outside
markets” were bearish for sugar today—the U.S. dollar index
was higher and crude oil prices were solidly lower. The
sugar bears have the solid overall near-term technical
advantage. Prices are in a seven-week-old downtrend on the
daily bar chart. Bulls' next upside price breakout
objective is to push and close prices above solid technical
resistance at the February high of 19.02 cents. Bears' next
downside price breakout objective is to push and close
prices below solid technical support at 17.50 cents. First
resistance is seen at today’s high of 18.11 cents and then
at this week’s high of 18.23 cents. First support is seen
at today’s low of 17.80 cents and then at last week’s low
of 17.67 cents. Wyckoff's Market Rating: 2.0.

May coffee closed down 25 points at 141.40 cents today.
Prices closed nearer the session high today. The key
“outside markets” were bearish for coffee today--the U.S.
dollar index was higher and crude oil prices were lower.
The coffee bears have the solid overall near-term technical
advantage. The next upside breakout objective for the bulls
is to close prices above solid technical resistance at
147.50 cents. The next downside price breakout objective
for the bears is closing prices below solid technical
support at 130.00 cents a pound. First resistance is seen
at this week’s high of 142.60 cents and then at 145.00
cents. First support is seen at 140.00 cents and then at
Tuesday’s contract low of 137.60 cents. Wyckoff's Market
Rating: 2.0.

May cocoa closed up $20 at $2,133 a ton. Prices closed
nearer the session high today and hit another fresh 8.5-
month low early on. Prices also scored a mildly bullish
“outside day” up on the daily bar chart today. If there is
good follow-through buying interest on Friday, then a
bullish “key reversal” up would be confirmed, which would
be one early technical clue that a market bottom is in
place. But right now the cocoa bears still have the solid
overall near-term technical advantage. Prices are in an 11-
week-old downtrend on the daily bar chart. The next upside
price breakout objective for the cocoa bulls is to push and
close prices above solid technical resistance at the
February high of $2,260. The next downside price breakout
objective for the bears is pushing and closing prices below
solid technical support at $2,100. First resistance is seen
at today’s high of $2,143 and then at this week’s high of
$2,150. First support is seen at today’s low of $2,102 and
then at $2,100. Wyckoff's Market Rating: 2.0

May cotton closed down 123 points at 83.23 cents today.
Prices closed nearer the session low today and saw profit-
taking pressure. The key “outside markets” were bearish for
cotton today—the U.S. dollar index was higher and crude oil
prices were lower. The cotton bulls still have the solid
overall near-term technical advantage. Prices are in a six-
week-old uptrend on the daily bar chart. The next upside
price breakout objective for the bulls is to produce a
close above solid technical resistance at 87.50 cents. The
next downside price breakout objective for the cotton bears
is to push and close prices below solid technical support
at last week’s low of 81.35 cents. First resistance is seen
84.00 cents and then at today’s high of 84.77 cents. First
support is seen at today’s low of 83.00 cents and then at
82.50 cents. Wyckoff's Market Rating: 6.5.

May orange juice closed up 250 points at $1.2895 today.
Prices closed nearer the session high today. FCOJ bulls
have the overall near-term technical advantage. A six-week-
old uptrend is in place on the daily bar chart. The next
upside price breakout objective for the FCOJ bulls is
pushing and closing prices above technical resistance at
last week’s high of $1.3200. The next downside technical
breakout objective for the FCOJ bears is to produce a close
below solid technical support at the February low of
$1.1995. First resistance is seen at $1.3000 and then at
$1.3200. First support is seen at $1.2750 and then at
today’s low of $1.2525. Wyckoff's Market Rating: 6.5.

March lumber futures closed down $5.20 at $378.00 today.
Prices hit a fresh three-week low today on more profit
taking. Bulls still have the overall near-term technical
advantage, but are fading. The next downside technical
breakout objective for the lumber bears is pushing and
closing prices below solid technical support at $370.00.
The next upside price breakout objective for the bulls is
pushing and closing prices above solid technical resistance
at $390.00. First resistance is seen at $380.00 and then at
$383.50. First support is seen at $377.50 and then at
$375.00. Wyckoff's Market Rating: 6.0

*. METALS: April gold futures closed up $1.50 an ounce at
$1,579.50 today. Prices closed nearer the session high
today after hitting a fresh 8.5-month low early on. Tepid
short covering and bargain hunting were featured today.
Serious near-term technical damage has been inflicted
recently. The key “outside markets” were bearish for gold
again today, as the U.S. dollar index was higher and crude
oil prices were solidly lower. Gold prices are in an
accelerating five-week-old downtrend on the daily bar
chart. The gold bulls’ next upside near-term price breakout
objective is to produce a close above solid technical
resistance at this week’s high of $1,618.80. Bears' next
near-term downside breakout price objective is closing
prices below solid technical support at the May 2012 low of
$1,538.70. First resistance is seen at today’s high of
$1,584.40 and then at $1,590.00. First support is seen at
$1,570.00 and then at $1,560.00. Wyckoff’s Market Rating:
2.5

March silver futures closed up $0.043 an ounce at $28.66
today. Prices closed nearer the session high on tepid short
covering in a bear market. The key “outside markets” were
bearish for silver again today, as the U.S. dollar index
was higher and crude oil prices were solidly lower. Serious
near-term technical damage has been inflicted in silver
recently. Prices Wednesday hit a six-month low. March silver
bears have the solid near-term technical advantage. Prices
are in an accelerating five-week-old downtrend on the daily
bar chart. Bulls’ next upside price breakout objective is
closing prices above solid technical resistance at $30.00
an ounce. The next downside price breakout objective for
the bears is closing prices below solid technical support
at $28.00. First resistance is seen at today’s high of
$28.88 and then at $29.00. Next support is seen at
Wednesday’s low of $28.31 and then at $28.00. Wyckoff's
Market Rating: 2.5.

March N.Y. copper closed down 520 points at 355.60 cents
today. Prices closed nearer the session low again today and
hit a fresh two-month low as the bulls have faded badly.
Serious near-term chart damage has been inflicted this
week. The key “outside markets” were bearish for copper
again today, as the U.S. dollar index was higher and crude
oil prices were solidly lower. Copper bears now have the
near-term technical advantage. Copper bulls' next upside
breakout objective is pushing and closing prices above
solid technical resistance at 365.00 cents. The next
downside price breakout objective for the bears is closing
prices below solid technical support at the December low of
352.30 cents. First resistance is seen at 357.50 cents and
then at 360.00 cents. First support is seen at today’s low
of 353.70 cents and then at 352.30 cents. Wyckoff's Market
Rating: 3.5.

*. ENERGIES: April crude oil closed down $2.08 a barrel at
$93.14 today. Prices closed nearer the session low again
today and hit a fresh six-week low. The crude oil market
has been pressured by a sharply higher U.S. dollar index
this week. The crude bulls have faded badly and the bears
now have the slight near-term technical advantage. The next
near-term upside price breakout objective for the crude oil
bulls is producing a close solid chart resistance at this
week’s high of $97.49 a barrel. The next near-term downside
price breakout objective for the crude oil bears is to
produce a close below solid technical support at $92.00.
First resistance is seen at $94.00 and then at $95.00.
First support is seen at today’s low of $92.63 and then at
$92.00. Wyckoff's Market Rating: 4.0

April heating oil closed down 465 points at $3.1057 today.
Prices closed nearer the session low again today and hit a
fresh three-week low. Bulls are fading quickly. The bulls'
next upside price breakout objective is closing prices
above solid technical resistance at $3.1750. Bears' next
downside price breakout objective is producing a close
below solid technical support at $3.0000. First resistance
lies at $3.1250 and then at today’s high of $3.1509. First
support is seen at today’s low of $3.0874 and then at
$3.0500. Wyckoff's Market Rating: 5.5.

April (RBOB) unleaded gasoline closed down 155 points at
$3.0440 today. Prices closed nearer the session high today
and hit a fresh three-week low early on. A bearish “key
reversal” down on the daily bar chart was confirmed this
week. This is one early technical clue that a market top is
in place. The gasoline bulls still have the overall near-
term technical advantage. The next upside price breakout
objective for the bulls is closing prices above solid
technical resistance at the contract high of $3.1691.
Bears' next downside price breakout objective is closing
prices below solid support at $2.9000. First resistance is
seen at today’s high of $3.0597 and then at $3.0800. First
support is seen at $3.0000 and then at today’s low of
$2.9782. Wyckoff's Market Rating: 7.0.

April natural gas closed down 3.9 cents at $3.292 today.
Prices closed nearer the session low today and scored a
bearish “outside day” down on the daily bar chart. Nat gas
bears have the overall near-term technical advantage.
Prices are in a five-week-old downtrend on the daily bar
chart. The next upside price breakout objective for the
bulls is closing prices above solid technical resistance at
the February high of $3.505. The next downside price
breakout objective for the bears is closing prices below
solid technical support at the January low of $3.15. First
resistance is seen at today’s high of $3.38 and then at
$3.40. First support is seen at $3.25 and then at last
week’s low of $3.191. Wyckoff's Market Rating: 3.0.

*.STOCKS, FINANCIALS, CURRENCIES: The March Euro currency
closed down 102 points at 1.3185 today. Prices closed
nearer the session low today and hit a fresh six-week low.
The bulls have faded badly this week. The Euro bears now
have the slight overall near-term technical advantage. A
three-week-old downtrend is now in place on the daily bar
chart. Euro bulls' next upside price breakout objective is
pushing and closing prices above solid technical resistance
at this week’s high of 1.3437. The next downside price
breakout objective for the bears is closing prices below
solid chart support at 1.3000. First resistance for the
Euro lies at 1.3250 and then at today’s high of 1.3292.
Next support is seen at today’s low of 1.3163 and then at
1.3100. Wyckoff's Market Rating: 4.5

The March Japanese yen closed up 73 points at 1.0730 today.
Prices closed near mid-range today. Short covering in a
bear market was featured. Bears still have the solid
overall near-term technical advantage. Prices are in a
five-month-old downtrend on the daily bar chart. There are
still no early clues of a market bottom being close at
hand. Bulls' next upside price breakout objective is
closing prices above solid resistance at 1.1000. Bears'
next downside breakout objective is closing prices below
solid technical support at 1.0500. First resistance is seen
at last week’s high of 1.0846 and then at 1.0900. First
support is seen at today’s low of 1.0782 and then at the
contract low of 1.0588. Wyckoff's Market Rating: 1.5.

The March Swiss franc closed down 41 points at 1.0736
today. Prices closed nearer the session low today and hit a
fresh five-week low. Prices are in a three-week-old
downtrend on the daily bar chart. The Swissy bears have the
near-term technical advantage. The next upside price
breakout objective for the bulls is closing prices above
solid resistance at 1.0925. The next downside price
breakout objective for the bears is closing prices below
solid technical support at the January low of 1.0657. First
resistance is seen at today’s high of 1.0790 and then at
1.0850. First support is seen at today’s low of 1.0716 and
then at 1.0700. Wyckoff's Market Rating: 4.0.

The March Australian dollar closed up 6 points at 1.0231
today. Prices closed nearer the session high today. Bulls
and bears are on a level near-term technical playing field
as the bulls have faded recently. Bulls' next upside price
breakout objective is closing prices above solid chart
resistance at the February high of 1.0435. The next
downside breakout objective for the bears is to produce a
close below solid technical support at last week’s low of
1.0200. First resistance is seen at 1.0300 and then at last
week’s high of 1.0353. Next support is seen at 1.0200 and
then at 1.0175. Wyckoff's Market Rating: 5.0

The March Canadian dollar closed down 5 points at .9810
today. Prices closed near mid-range today and hit another
fresh 6.5-month low. Prices are in a steep six-week-old
downtrend on the daily bar chart. Bears have the near-term
technical advantage. Bulls' next upside price breakout
objective is producing a close above chart resistance at
1.0000. The next downside price breakout objective for the
bears is closing prices below solid technical support at
.9750. First resistance is seen at today’s high of .9835
and then at .9885. First support is seen at today’s low of
.9791 and then at .9750. Wyckoff's Market Rating: 3.5.

The March British pound closed up 4 points at 1.5246 today.
Prices closed nearer the session high today and did hit a
fresh contract low early on. Bears still have the solid
overall near-term technical advantage. Prices are in a
steep seven-week-old downtrend on the daily bar chart. The
next upside price breakout objective for the bulls is
closing prices above solid technical resistance at this
week’s high of 1.5506. Bears' next downside technical
breakout objective is closing prices below solid support at
1.5000. First resistance is seen at 1.5300 and then at
1.5350. First support is seen at today’s contract low of
1.5124 and then at 1.5100. Wyckoff's Market Rating: 1.0.

The March U.S. dollar index closed up 34 points at 81.49
today. Prices closed nearer the session high again today
and hit another fresh three-month high. The bulls have
gained solid upside near-term technical momentum recently
and now have the near-term technical advantage. Bulls' next
upside price breakout objective is to close prices above
solid technical resistance at the November high of 81.70.
The next downside price breakout objective for the bears is
to produce a close below solid technical support at 80.00.
Next resistance lies at today’s high of 81.62 and then at
81.70. First support is seen at today’s low of 81.12 and
then at 80.99. Wyckoff's Market Rating: 5.5.

March U.S. T-Bonds closed up 23/32 at 143 26/32 today.
Prices closed nearer the session high today on more short
covering in a bear market. T-Bond bears still have the
overall near-term technical advantage. The next downside
price breakout objective for the T-Bond bears is closing
prices below solid technical support at the February low of
142 5/32. The next upside technical objective for the bulls
is to produce a close above solid technical resistance at
144 16/32. First resistance is seen at today’s high of 144
7/32 and then at 144 16/32. First support is seen at
today’s low of 143 3/32 and then at this week’s low of 142
17/32. Wyckoff's Market Rating: 3.0.

March U.S. T Notes closed up 9.5 (32nds) at 131.24.5 today.
Prices closed near mid-range today and hit a fresh four-
week high on short covering. Bears still have the overall
near-term technical advantage. The next upside price
breakout objective for the bulls is closing prices above
solid resistance at the January high of 132.17.5. The next
downside price breakout objective for the bears is
producing a close below solid technical support at the
February low of 130.23.0. First resistance is seen at
today’s high of 131.31.5 and then at 132.08.0. First
support is seen at today’s low of 131.14.5 and then at this
week’s low of 131.05.0. Wyckoff's Market Rating: 3.5

GENERAL STOCK MARKET COMMENT: The U.S. stock indexes closed
lower again today on more profit taking. The bulls are
fading. The Dow and S&P 500 stock index futures today saw
significantly technically bearish “key reversals” down
confirmed on the daily bar charts for both indexes,
following the bearish “outside day” down price action on
the daily charts for both on Wednesday. Key reversals down
would be an early technical clue that the Dow and S&P 500
have put in at least near-term market tops. Another bearish
clue that the U.S. stock market is headed for some lean
times just ahead is that the copper futures market has been
hammered lower this week. History shows that the red
industrial metal can be a leader of significant price
movements in the stock market. Traders are still digesting
the release Wednesday afternoon of the Federal Reserve’s
Open Market Committee minutes from early January. Those
minutes said U.S. economic conditions are improving to the
point that some FOMC members think its massive asset-
purchasing program (quantitative easing) may have to be
changed soon. The FOMC will further address the issue at
its next meeting in March. It can be argued, and many
market analysts are saying, that some markets overreacted
to the FOMC minutes. First, there was not at all a
consensus among the FOMC members on whether to end the
asset purchase program sooner rather than later. And if the
Fed does indeed target the unemployment rate for its
monetary policy decisions, the easy money policy of the
central bank likely won’t end any time soon. Fed Chairman
Bernanke also remains firmly in the dovish monetary policy
camp, most agree. European stocks and the Euro currency
slumped Thursday, following the lead of the U.S. markets
Wednesday afternoon. European stocks were also hurt by
disappointing Euro zone purchasing managers’ data from
Markit that was released Thursday. That data suggests the
Euro zone is still in overall economic contraction in the
first quarter. Asian stock markets were also weaker
Thursday, following the release of the U.S. FOMC minutes.
China’s stock market dropped sharply Thursday after Chinese
officials reiterated it wants to keep domestic property
prices in check—which could mean tighter monetary policy in
the near future. China’s central bank also made a large
withdrawal of cash from the banking system this week, in an
effort to keep price inflation in check. This is also a
negative for the stock indexes.

The Nasdaq stock futures index closed down 24.00 at
2,713.50 today. Prices closed nearer the session low and
hit a fresh seven-week low today. Bulls still have the
slight near-term technical advantage but are fading. Bulls'
next upside price breakout objective is closing prices
above solid resistance at this week’s high of 2,786.50. The
bears' next downside price breakout objective is closing
prices below solid technical support at 2,650.00. First
resistance is seen at 2,725.00 and then at today’s high of
2,741.00. First support is seen at today’s low of 2,699.50
and then at 2,675.00. Wyckoff's Market Rating: 5.5

The S&P 500 futures index closed down 5.90 at 1,501.20.
Prices closed near mid-range today and hit a fresh two-week
low. Today’s follow-through selling confirmed a bearish
“key reversal” down on the daily bar chart. That is one
early technical clue that a market top is in place. But the
bulls still have the overall near-term technical advantage.
Bulls' next upside price breakout objective is closing
prices above solid resistance at this week’s high of
1,530.00. The next downside price breakout objective for
the bears is closing prices below solid support at the
February low of 1,490.50. First resistance is seen at
today’s high of 1,509.60 and then at 1,521.80. First
support is seen at today’s low of 1,495.70 and then at
1,490.50. Wyckoff's Market Rating: 6.0.

The Dow futures closed down 9 points at 13,880. Prices
closed nearer the session high today and hit a fresh two-
week low early on. Today’s follow-through selling confirmed
a bearish “key reversal” down on the daily bar chart. That
is one early technical clue that a market top is in place.
But right now the bulls still have the overall near-term
technical advantage. The next upside price objective for
the bulls is closing prices above solid technical
resistance at the all-time high of 14,270, basis nearby
futures. The next downside price objective for the bears is
closing prices below solid technical support at 13,600.
First resistance in the Dow lies at 13,900 and then at
13,920. First support is seen at 13,850 and then at today’s
low of 13,815. Wyckoff's Market Rating: 6.5.

Click below for my welcome letter to all new customers and
for an explanation of my Market Rating System.

http://www.jimwyckoff.com/newsletter/WelcomeAboard/

IMPORTANT NOTE: I am not a futures broker and do not manage
any trading accounts other than my own personal account. It
is my goal to point out to you potential trading
opportunities. However, it is up to you to: (1) decide when
and if you want to initiate any traders and (2) determine
the size of any trades you may initiate. Any trades I
discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission
(CFTC) has said about futures trading (and I agree 100%):
1. Trading commodity futures and options is not for
everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS.
Before you invest any money in futures or options
contracts, you should consider your financial experience,
goals and financial resources, and know how much you can
afford to lose above and beyond your initial payment to a
broker. You should understand commodity futures and options
contracts and your obligations in entering into those
contracts. You should understand your exposure to risk and
other aspects of trading by thoroughly reviewing the risk
disclosure documents your broker is required to give you.

Jim Wyckoff
 

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