Cattle Crossing: October Live Cattle

John LunneyGeneral Commentary

October Live Cattle

       The October live cattle market turned south today and managed to hold up right at the previously defined breaking point of 106. This level represents the angled speed support line which has been holding this market together. In order to stave off further losses the market will have to rebound from here. A hold beneath 106 will not be healthy. I’d have to label yesterday’s high mark as a (iv) wave extreme which in turn has given way to a (v) wave impulsive decline sending the market beneath the recently established lows seen last week. Projection level extends  to +/- 103. Conversely, if the market were to hold and fortify 107.500 an argument could be made that a corrective wave (ii) low has been established. This was the scenario we discussed yesterday. If so, structural evidence should be visual pointing to the  development of an impulsive (iii) wave advance.

 

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