Thursday Evening, September 16--Jim Wyckoff's Daily Markets Update COPYING AND FORWARDING IS THEFT AND PROHIBITED BY LAW!! Copyright: 2010 Jim Wyckoff Enterprises. It is theft and a violation of international law to redistribute any part of this proprietary content in any form without expressed permission from Jim Wyckoff. This content is reserved for paying subscribers. I will vigorously pursue any and all violators of my copyrights — and they will be prosecuted. 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: October live cattle closed up $0.57 at $98.70 today. Prices closed near the session high, hit a fresh two-week high and scored a bullish "outside day" up on the daily bar chart. Bulls have upside near-term technical momentum and gained more today. The cattle market bulls still have the overall near-term technical advantage. Bulls' next upside price objective is to push and close prices above solid technical resistance at the contract high of $99.97. The next downside technical objective for the bears is pushing and closing prices below solid technical support at last week's low of $96.30. First resistance is seen at today's high of $98.90 and then at the September high of $99.55. First support is seen at $98.45 and then at $98.00. Wyckoff's Market Rating: 7.0. November feeder cattle closed up $0.45 at $112.77 today. Prices closed nearer the session high today after hitting a fresh 2.5-month low early on. Prices also scored a bullish "outside day" up on the daily bar chart. Prices are still in a four-week-old downtrend on the daily bar chart. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $114.00. The next downside price objective for the bears is to push and close prices below solid technical support at today's low of $111.72. First resistance is seen at today's high of $113.00 and then at this week's high of $113.32. First support is seen at $112.50 and then at $112.00. Wyckoff's Market Rating: 5.0 October lean hogs closed down $1.00 at $78.25 today. Prices closed nearer the session low today and were pressured by profit taking and by reports Russia has banned pork shipments from two U.S. pork plants. Hog bulls still have the solid near-term technical advantage. The next upside price objective for the bulls is to push and close prices above solid chart resistance at the contract high of $80.07, scored in August. The next downside price objective for the bears is pushing and closing prices below solid technical support at $77.00. First resistance is seen at $79.00 and then at today's high of $79.65. First support is seen at $78.00 and then at today's low of $77.47. Wyckoff's Market Rating: 7.0 *. GRAINS: December corn futures closed up 3/4 cent at $4.96 today. Prices closed nearer the session high today. Disappointing weekly USDA export sales data for corn today did limit gains in the corn market. The corn market bulls still have the solid overall near-term technical advantage, however. Prices are in a 2.5-month-old uptrend on the daily bar chart. Prices are still short-term overbought and due for a decent downside correction very soon. Corn bulls' next upside price objective is to push and close prices above major psychological resistance at $5.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $4.70. First resistance for December corn is seen at this week's high of $4.98 1/2 and then at $5.00. First support is seen at today's low of $4.89 1/2 and then at $4.85. Wyckoff's Market Rating: 8.0 November soybeans closed down 6 1/4 cents at $10.36 1/4 a bushel today. Prices closed nearer the session low today. Disappointing weekly USDA export sales helped to pressure in the market today. The soybean bulls still have the overall near-term technical advantage. A choppy three- month-old uptrend is in place on the daily bar chart. The next upside technical objective for the soybean bulls is pushing and closing November prices above solid technical resistance at the December 2009 high of $10.60 1/4. The next downside price objective for the bears is pushing and closing prices below major psychological support at $10.00. First resistance for November soybeans is seen at today's high of $10.46 1/2 and then at the September high of $10.57. First support is seen at today's low of $10.33 and then at $10.25. Wyckoff's Market Rating: 7.0. December soybean meal closed down $1.40 at $296.30 today. Prices closed near mid-range today. Bulls still have the overall near-term technical advantage. The next downside price objective for the bears is pushing and closing prices below solid technical support at $285.00. The next upside price objective for the bulls is to produce a close above solid technical resistance at last week's high of $308.40. First resistance comes in this week's high of $298.60 and then at $300.00. First support is seen at today's low of $294.00 and then at this week's low of $291.00. Wyckoff's Market Rating: 7.0. December bean oil closed down 26 points at 41.75 cents today. Prices closed nearer the session low today after hitting a fresh four-week high early on. Bean oil bulls still have the near-term technical advantage. Bean oil bears' next downside technical price objective is pushing and closing prices below solid technical support at 40.00 cents. The next upside price objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 42.50 cents. First resistance is seen at 42.00 cents and then at today's high of 42.15 cents. First support is seen at today's low of 41.60 cents and then at this week's low of 41.51 cents. Wyckoff's Market Rating: 6.0 December Chicago SRW wheat closed down 7 1/2 cents at $7.19 1/4 today. Prices closed nearer the session low today. Wheat bulls still have the overall near-term technical advantage. However, bulls are now fading and prices are still in a five-week-old sideways trading range on the daily chart. Bulls' next upside price objective is to push and close Chicago SRW prices above solid resistance at $7.65 a bushel. The next downside price objective for the wheat futures bears is pushing and closing prices below solid technical support at $7.00. First resistance is seen at today's high of $7.37 3/4 and then at $7.44 1/4. First support lies at today's low of $7.11 1/2 and then at $7.06. Wyckoff's Market Rating: 6.0. December K.C. HRW wheat closed down 9 1/4 cents at $7.50 1/2 today. Prices closed near mid-range today. The bulls still have the overall near-term technical advantage but are fading a bit. Bulls' next upside price objective is pushing and closing prices above solid technical resistance at this week's high of $7.75 1/2. The bears' next downside objective is pushing and closing prices below solid technical support at last week's low of $7.34 1/2. First resistance is seen at today's high of $7.59 and then at $7.65. First support is seen at today's low of $7.45 and then at $7.34 1/2. Wyckoff's Market Rating: 6.0. December oats closed up 2 1/2 cents at $3.42 1/2 today. Prices closed near the session high today. Oats bulls still have the solid overall near-term technical advantage. Bears' next downside price objective is pushing and closing prices below solid technical support at this week's low of $3.18. Bulls' next upside price objective is pushing and closing prices above solid technical resistance at $3.50. First support lies at today's low of $3.37 1/4 and then at $3.35. First resistance is seen at $3.45 and then at this week's high of $3.48 3/4. Wyckoff's Market Rating: 8.0. *. SOFTS: October sugar closed up 56 points at 24.38 cents today. Prices closed nearer the session high today. There was not good follow-through selling pressure today and a bearish "key reversal" down on the daily bar chart was not confirmed. Sugar bulls still have the overall near-term technical advantage at present. Bulls' next upside price objective is to push and close prices above longer-term technical and psychological resistance at 25.00 cents. Bears' next downside price objective is to push and close prices below solid technical support at 22.50 cents. First resistance is seen at today's high of 24.69 cents and then at this week's high of 24.88 cents. First support is seen at 24.00 cents and then at 23.50 cents. Wyckoff's Market Rating: 8.5 December coffee closed down 280 points at 191.35 cents today. Prices closed near the session low today. Prices are still hovering just below the recent 13-year high. Bulls still have the solid overall near-term technical advantage. Bulls' next upside objective is to close prices above major psychological resistance at 200.00 cents. The next downside price objective for the bears is closing prices below solid technical support at last week's low of 182.60 cents a pound. First resistance is seen at 192.50 cents and then at 194.00 cents. First support is seen at 190.00 cents and then at this week's low of 188.20 cents. Wyckoff's Market Rating: 7.0 December cocoa closed up $57 at $2,746 today. Prices closed near mid-range today and saw more short covering in a bear market, and some more bargain-hunting buying. Cocoa bears still have the near-term technical advantage. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at the September high of $2,808. The next downside price objective for the bears is pushing and closing prices below solid technical support at this week's low of $2,595. First resistance is seen at today's high of $2,784 and then at $2,808. First support is seen at $2,725 and then at $2,700. Wyckoff's Market Rating: 3.0. December cotton closed up 188 points at 95.50 cents today. Prices closed nearer the session high and hit another fresh 26-month high today. Cotton bulls still have the solid near-term technical advantage. There are still no early technical clues to suggest a market top is in place. The next downside price objective for the cotton bears is to produce a close below solid technical support at 93.00 cents. The next upside price objective for the bulls is to produce a close above solid technical and major psychological resistance at 100.00 cents. First support is seen at 95.00 cents and then at 94.50 cents. First resistance is seen at 96.00 cents and then at today's high of 96.49 cents. Wyckoff's Market Rating: 9.0. November orange juice closed up 30 points at $1.4840 today. Prices closed near the session high today and hit another fresh six-week high. Bulls have the near-term technical advantage. The next upside price objective for the FCOJ bulls is pushing and closing prices above strong technical resistance at the August high of $1.5090. The next downside technical objective for the FCOJ bears is to produce a close below solid technical support at $1.3800. First resistance is seen at today's high of $1.4880 and then at $1.5000. First support is seen at today's low of $1.4710 and then at $1.4600. Wyckoff's Market Rating: 6.5. November lumber futures closed down $9.20 at $217.80 today. Prices closed near the session low today as bulls faded. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at last week's high of $240.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $210.00. First resistance is seen at $220.00 and then at today's high of $223.50. First support is seen at today's low of $217.50 and then at $215.00. Wyckoff's Market Rating: 4.0. *. METALS: December gold futures closed up $5.70 at $1,274.40 today. Prices closed near mid-range today and did hit another fresh contract and all-time record high today. A weaker U.S. dollar index today helped to boost gold. Look for price volatility in the gold market to heat up in the near term, with bigger daily price movements likely, both on the upside and on the downside, with prices now in uncharted territory. Gold bulls still have the solid overall near-term technical advantage. There are no early technical clues to suggest a market top is close at hand. Prices are in a seven-week-old uptrend on the daily bar chart. Bulls' next near-term upside technical objective is to produce a close above psychological resistance at $1,300.00. Bears' next near- term downside price objective is closing prices below solid technical support at $1,250.00. First resistance is seen at today's contract and all-time high of $1,279.50 and then at $1,285.00. Support is seen at today's low of $1,266.10 and then at $1,260.00. Wyckoff's Market Rating: 8.5. December silver futures closed up 22.9 cents at $20.80 an ounce today. Prices closed near the session high again today and scored a fresh 30-month high. A weaker U.S. dollar index and good speculative buying interest boosted the silver market today. Silver bulls have the solid near-term technical advantage. Prices are in a steep three-week-old uptrend on the daily bar chart. There are still no early technical clues to suggest a market top is close at hand. However, the market is now short-term oversold and due for a corrective pullback very soon. The next downside price objective for the bears is closing prices below solid technical support at $20.00. Bulls' next upside price objective is producing a close above solid technical resistance at $21.00 an ounce. First resistance is seen at today's high of $20.82 and then at $21.00. Next support is seen at today's low of $20.475 and then at $20.34. Wyckoff's Market Rating: 9.0. December N.Y. copper closed up 260 points at 349.25 cents today. Prices closed nearer the session high. The U.S. dollar index was weaker today, which did support copper. The copper bulls still have the overall near-term technical advantage. Bulls' next upside objective is pushing and closing prices above solid technical resistance at 360.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at today's high of 351.70 cents and then at last week's high of 353.45 cents. First support is seen at 347.00 cents and then at today's low of 344.35 cents. Wyckoff's Market Rating: 7.0. *. ENERGIES: October crude oil closed down $1.58 at $74.44 a barrel today. Prices closed near the session low today. Bulls are fading and bears again have the slight near-term technical advantage. The next near-term upside price objective for the bulls is producing a close above solid technical resistance at this week's high of $78.04 a barrel. The next near-term downside price objective for the crude oil bears is to produce a close below solid technical support at $72.00. First resistance is seen at $75.00 and then at $75.50. First support is seen at $74.00 and then at $73.50. Wyckoff's Market Rating: 4.5. October heating oil closed down 376 points at $2.0950 today. Prices closed nearer the session low today. Bulls and bears are back on a level near-term technical playing field. Prices are still in a three-week-old uptrend on the daily bar chart. The bulls' next upside price objective is closing prices above solid technical resistance at this week's high of $2.1526. Bears' next downside price objective is producing a close below solid technical support at $2.0250. First resistance lies at $2.1250 and then at today's high of $2.1312. First support is seen at today's low of $2.0841 and then at $2.0600. Wyckoff's Market Rating: 5.0. October (RBOB) unleaded gasoline closed down 396 points at $1.9229. Prices closed near mid-range today. Bulls and bears are back on a level near-term technical playing field. The next upside price objective for the bulls is closing prices above solid technical resistance at this week's high of $2.0131. Bears' next downside price objective is closing prices below solid support at $1.8400. First resistance is seen at today's high of $1.9528 and then at $1.9690. First support is seen at today's low of $1.9000 and then at $1.8750. Wyckoff's Market Rating: 5.0. October natural gas closed up 5.3 cents at $4.048 today. Prices closed nearer the session high today, hit another fresh three-week high on more short covering in a bear market, and scored a bullish "outside day" up on the daily bar chart. The bears still have the overall near- term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $4.20. The next downside price objective for the bears is closing prices below solid technical support at this week's low of $3.8000. First resistance is seen at today's high of $4.144 and then at $4.20. First support is seen at $4.00 and then at $3.932. Wyckoff's Market Rating: 2.5. *.STOCKS, FINANCIALS, CURRENCIES: The December Euro currency closed up 76 points at 1.3078 today. Prices closed nearer the session high and hit a fresh five-week high today. Bulls have the near-term technical advantage. Euro bulls' next upside price objective is pushing and closing prices above solid technical resistance at the August high of 1.3325. The next downside price objective for the bears is closing prices below solid chart support at this week's low of 1.2700. First resistance for the Euro lies at today's high of 1.3112 and then at 1.3150. Next support is seen at 1.3000 and then at today's low of 1.2971. Wyckoff's Market Rating: 6.0 The December Japanese yen closed down 29 points at 1.1662 today. Prices closed near the session low today and closed at a fresh four-week low close. Bank of Japan intervention this week has sunk the yen. Serious near- term technical damage has been inflicted as a bearish "key reversal" down has occurred on the daily bar chart. That is one early technical clue that a market top is in place. Bulls' next upside price objective is closing prices above solid resistance at 1.1900. Bears' next downside objective is closing prices below solid technical support at 1.1500. First resistance is seen at 1.1700 and then at today's high of 1.1745. First support is seen at today's low of 1.1660 and then at 1.1600. Wyckoff's Market Rating: 6.0. The December Swiss franc closed down 107 points at .9862 today. Prices closed nearer the session low today and saw more profit-taking pressure from recent gains. The Swissy bulls still have the solid overall near-term technical advantage. Prices are still in a 3.5-month-old uptrend on the daily bar chart. There are still no early technical clues that a market top is close at hand. The next upside price objective for the bulls is closing prices above solid resistance at 1.0100. The next downside price objective for the bears is closing prices below solid technical support at the September low of .9737. First resistance is seen at .9900 and then at .9950. First support is seen at today's low of .9839 and then at .9800. Wyckoff's Market Rating: 7.0. The December Australian dollar closed down 15 points at .9271 today. Prices closed near mid-range again today and saw mild profit-taking pressure. Aussie bulls still have the solid overall near-term technical advantage. There are still no early technical clues of a market top being close at hand. Bulls' next upside price objective is closing prices above solid chart resistance at .9500. The next downside objective for the bears is to produce a close below solid technical support at .9100. First resistance is seen at today's high of .9300 and then at .9330. Next support is seen at today's low of .9232 and then at .9200. Wyckoff's Market Rating: 7.5 The December Canadian dollar closed up 10 points at .9725 today. Prices closed near mid-range. Bulls have the slight near-term technical advantage. Bulls' next upside price objective is producing a close above solid chart resistance at the August high of .9867. The next downside price objective for the bears is closing prices below solid technical support at .9550. First resistance is seen at today's high of .9745 and then at this week's high of .9768. First support is seen at .9700 and then at .9669. Wyckoff's Market Rating: 5.5. The December British pound closed up 14 points at 1.5623 today. Prices closed nearer the session high today. The bulls have the near-term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at 1.5700. Bears' next downside technical objective is closing prices below solid support at last week's low of 1.5284. First resistance is seen at this week's high of 1.5642 and then at 1.5700. First support is seen at today's low of 1.5528 and then at 1.5500. Wyckoff's Market Rating: 6.0. The December U.S. dollar index closed down 27 points at 81.47 today. Prices closed nearer the session low today. Bears still have the near-term technical advantage. Bulls' next upside price objective is to close prices above solid technical resistance at last week's high of 83.31. The next downside price objective for the bears is to produce a close below solid technical support at the August low of 80.74. Next resistance lies at today's high of 81.87 and then at 82.00. First support is seen at today's low of 81.33 and then at this week's low of 81.24. Wyckoff's Market Rating: 3.0. December U.S. T-Bonds closed down 27/32 at 129 26/32. Prices closed nearer the session low today. Bond market bulls still have the overall near-term technical advantage. However, they have faded a bit again as prices are in a four-week-old downtrend on the daily bar chart. The next downside price objective for the T-Bond bears is closing prices below solid technical support at 128 even. The next upside technical objective for the bulls is to produce a close above solid technical resistance at 132 even. First resistance is seen at 130 even and then at 130 16/32. First support is seen at today's low of 129 13/32 and then at this week's low of 129 5/32. Wyckoff's Market Rating: 6.0 December U.S. T Notes closed down 10.0 (32nds) at 123.28.0 today. Prices closed nearer the session low today. Bulls still have the overall near-term technical advantage in notes. However, prices have been trending lower for nearly four weeks. The next upside price objective for the bulls is closing prices above solid resistance at last week's high of 125.03.5. The next downside price objective for the bears is producing a close below solid technical support at 122.00.0. First resistance is seen at 124.00.0 and then at today's high of 124.15.5. First support is seen at today's low of 123.20.0 and then at 123.10.0. Wyckoff's Market Rating: 6.0. GENERAL STOCK MARKET COMMENT: The U.S. stock indexes closed firmer again today and hit multi- week highs. Bulls have gained upside near-term technical momentum recently as the bulls have "climbed a wall of worry." While the months of September and October have been historically unkind to the stock market bulls, the indexes are getting through the month of September in good shape, so far. The Nasdaq futures index closed up 10.25 at 1,949.75 today. Prices closed near the session high today and hit a fresh four-month high. Bulls' next upside price objective is closing prices above solid resistance at 2,000.00. The bears' next downside price objective is closing prices below solid technical support at 1,850.00. First resistance is seen at today's high of 1,953.25 and then at 1,975.00. First support is seen at today's low of 1,929.50 and then at 1,914.25. Wyckoff's Market Rating: 6.0. The S&P 500 futures index closed up 1.90 at 1,122.60. Prices closed near the session high today and hit and closed at a fresh four-week high. Bulls' next upside price objective is closing prices above solid resistance at the August high of 1,127.50. The next downside price objective for the bears is closing prices below solid support at the August low of 1,037.50. First resistance is seen at 1,127.50 and then at 1,135.00. First support is seen at today's low of 1,113.00 and then at 1,100.00. Wyckoff's Market Rating: 6.0. The Dow futures closed up 41 points at 10,550 today. Prices closed near the session high today and hit a fresh four-week high. The next upside price objective for the bulls is closing prices above solid technical resistance at the August high of 10,685. The next downside price objective for the bears is closing prices below solid technical support at 10,000. First resistance in the Dow lies at today's high of 10,550 and then at 10,600. First support is seen at 10,500 and then at today's low of 10,458. Wyckoff's Market Rating: 6.0. 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