December Live Cattle
The December Live Cattle market’s reaction to the bearish tone of Friday’s post market report sent prices sharply lower in today’s session. December cattle finished limit down at 114.425 and are close to a violation of the intermediate wave (i) high resting just underneath at 113.600 which coincides with major cross zone support. The current closing price sits on a double speed cross level and could produce an immediate rebound and mark a possible (iv) wave low thus keeping the bullish sequence intact. This means the market will have very little wiggle room in attempting to keep the impulsive structure valid. In the event of a wave overlap I’d have to readdress my current stance. In Elliott terms the recent advance to the high of 117.725 could mark an (X) extreme thus producing another (a-b-c) sequenced decline. Tuesday’s price action should produce the needed evidence to determine the markets’s most probabilistic path.
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