FUTURES MARKET SERVICE MORNING TECHNICAL COMMENTS *022* #SOYBEANS (NOV) 07/01/02: The gap upmove on the day session chart is a bullish indicator for trend. Since the close was above the 2nd swing resistance number, the market's posture is bullish and could see more upside follow-through early in the session. The next area of resistance is around 510 1/2 and 515 1/4, while 1st support hits today at 502 1/2 and below there at 499 1/4. The market's close above the 9-day moving average suggests the short-term trend remains positive. Studies are showing positive momentum, but are now in overbought territory so some caution is warranted. The next upside target is 515 1/4. The 9-day RSI over 70 indicates the market is approaching overbought levels. MEAL (AUG): Momentum studies are trending higher, but have entered overbought levels. The near-term upside objective is at 179.5. The rally brought the market to a new contract high. The gap up on the day session chart gave a bullish indicator and more follow through could be seen this session. First resistance comes in at 177.7, with support at 175.0. The market's short- term trend is positive on a close above the 9-day moving average. The market's close above the 2nd swing resistance number is a bullish indication. With a reading over 70, the 9-day RSI is approaching overbought levels. BEAN OIL (AUG): The market's close above the 9-day moving average suggests the short- term trend remains positive. Positive momentum studies in the neutral zone will tend to reinforce higher price action. The next upside target is 18.62. Since the close was above the 2nd swing resistance number, the market's posture is bullish and could see more upside follow-through early in the session. The gap upmove on the day session chart is a bullish indicator for trend. Daily swing resistance is found at 18.47 and above there at 18.62. Support should be encountered at 18.24 and 18.16. ##SOYBEANS: BIG GAP UP BUT THE MARKET MIGHT BE SLIGHTLY EXHAUSTED * #CORN (DEC) 07/01/02: Momentum studies are trending higher, but have entered overbought levels. The near-term upside objective is at 249 3/4. It is a mildly bullish indicator that the market closed over the pivot swing number. Market resistance comes in at 249 3/4 today, with support at 238 3/4. The market's short-term trend is positive on a close above the 9-day moving average. With a reading over 70, the 9-day RSI is approaching overbought levels. The daily closing price reversal down puts the market on the defensive. ##CORN: FAILED AUCTION RALLY INDICATES SUPPORT TEST OF 240 DECEMBER * #WHEAT (SEP) 07/01/02: With the close higher than the pivot swing number, the market is in a slightly bullish posture. Look for near-term support at 309 1/2 and below there at 305 1/4, with resistance levels at 316 1/2 and 319 1/4. The market's close above the 9-day moving average suggests the short-term trend remains positive. Studies are showing positive momentum, but are now in overbought territory so some caution is warranted. The next upside target is 319 1/4. The 9-day RSI over 70 indicates the market is approaching overbought levels. ##WHEAT: HUGE RANGE UP GIVES A CRITICAL PIVOT POINT TODAY AT 317 1/2 * #HOGS (AUG) 07/01/02: With the close over the 1st swing resistance number, the market is in a moderately positive position. Resistance levels comes in at 47.12 and 47.47 today, while support is around 46.32 and then 45.87. The market's short-term trend is negative as the close remains below the 9-day moving average. Momentum studies trending lower at mid-range should accelerate a move lower if support levels are taken out. The next downside objective is now at 45.87. ##HOGS: DOUBLE BOTTOM FORMATION AROUND 45.92 IS THIN SUPPORT * #CATTLE (AUG) 07/01/02: Daily stochastics turning lower from overbought levels is bearish and will tend to reinforce a downside break especially if near-term support is penetrated. The next downside target is 63.05. With the close higher than the pivot swing number, the market is in a slightly bullish posture. Support should be encountered at 63.32 and below there at 63.05. Market resistance is at 63.77 and then again at 63.92. The daily closing price reversal up is positive. The market's close below the 9-day moving average is an indication the short-term trend remains negative. ##CATTLE: COILING ACTION LEAVES A SLIGHT DOWNWARD BIAS * #SUGAR (OCT) 07/01/02: The market's close below the 1st swing support number suggests a moderately negative setup for today. Swing resistance comes in at 5.35, with support found at 4.67. The market's short-term trend is negative as the close remains below the 9-day moving average. Daily momentum studies are on the rise from low levels and should accelerate a move higher on a push through the 1st swing resistance. The near-term upside objective is at 5.35. ##SUGAR: BIG RANGE WITH A POOR CLOSE LEAVES THE BEARS IN FAVOR * #COTTON (OCT) 07/01/02: The market's close above the 9-day moving average suggests the short-term trend remains positive. Since the close was above the 2nd swing resistance number, the market's posture is bullish and could see more upside follow-through early in the session. Next resistance area comes in at 49.21 and then again at 49.86, while support is targeted at 46.71 and 44.86. The daily stochastics have crossed over up which is a bullish indication. The next upside target is 49.86. The 9-day RSI over 70 indicates the market is approaching overbought levels. ##COTTON: REJECTION OF 46.71 CREATES NEW STRONGER SUPPORT ZONE * #ENERGIES 07/01/02: CRUDE OIL (AUG): The upside closing price reversal on the daily chart is somewhat bullish. It is a mildly bullish indicator that the market closed over the pivot swing number. Support for crude is keyed on 26.57 and below there at 26.12, with resistance pegged at 27.23 and 27.44. The market's short-term trend is positive on a close above the 9-day moving average. Momentum studies are trending higher, but have entered overbought levels. The near-term upside objective is at 27.44. UNLEADED GAS (AUG): Studies are showing positive momentum, but are now in overbought territory so some caution is warranted. The next upside target is 80.50. The swing indicator gave a moderately negative reading with the close below the 1st support number. Resistance today is at 80.50, while support should be found around 77.10. The market's close above the 9-day moving average suggests the short-term trend remains positive. HEATING OIL (AUG): It is a mildly bullish indicator that the market closed over the pivot swing number. Heating oil should encounter support around 66.12, with resistance is at 69.72. The market's short-term trend is positive on a close above the 9-day moving average. Momentum studies are trending higher, but have entered overbought levels. The near-term upside objective is at 69.72. The upside closing price reversal on the daily chart is somewhat bullish. ##ENERGIES: RESISTANCE OF LAST WEEKS HIGHS BECOMES A PIVOT POINT * #P-METALS 07/01/02: SILVER (SEP): The swing indicator gave a moderately negative reading with the close below the 1st support number. Initial support for silver is at 482.8 and below there at 481.1 with resistance likely at 487.2 and 488.3. The market's close below the 9-day moving average is an indication the short-term trend remains negative. Positive momentum studies in the neutral zone will tend to reinforce higher price action. The next upside target is 487.2. The downside closing price reversal on the daily chart is somewhat negative. GOLD (AUG): Support for gold today comes in near 304.10, while resistance is pegged at 325.70. Daily stochastics are trending lower, but have declined into oversold territory. The next downside objective is now at 304.10. The market is in a bearish position with the close below the 2nd swing support number. The market's short-term trend is negative as the close remains below the 9-day moving average. The major trend is down with the cross over back below the 40-day moving average. The outside day down is a negative signal. The daily closing price reversal down puts the market on the defensive. ##METALS: MAJOR SUPPORT FAILURE FRIDAY MORE STOP LOSS SELLING AHEAD * #CURRENCIES 07/01/02: YEN (SEP): The market's close above the 9-day moving average suggests the short-term trend remains positive. The downside closing price reversal on the daily chart is somewhat negative. With the close higher than the pivot swing number, the market is in a slightly bullish posture. Swing resistance is targeted at 84.86 and above there at 85.67, with the yen finding support around 83.20 and below there at 82.35. Studies are showing positive momentum, but are now in overbought territory so some caution is warranted. The next upside target is 85.67. The 9-day RSI over 70 indicates the market is approaching overbought levels. EURO (SEP): The daily stochastics gave a bullish indicator with a crossover up. The near-term upside objective is at 1.0036. The market is in a bearish position with the close below the 2nd swing support number. Swing support for the Euro comes in at 0.9728, with overhead resistance at 1.0036. The market's short-term trend is positive on a close above the 9-day moving average. With a reading over 90, the 9-day RSI indicates the market is extremely overbought. The market's key reversal down is a bearish signal. The rally brought the market to a new contract high. The gap down on the day session chart is bearish with more selling pressure possible today. ##FOREX: PAUSE IN THE DOLLAR SLIDE FRIDAY OPENS UP MORE SELLING AHEAD * #BONDS (SEP) 07/01/02: It is a slightly negative indicator that the close was lower than the pivot swing number. Near-term resistance for bonds is at 103.11 and then again at 103.25, while swing support hits at 102.15 and below there at 102.01. The market's close below the 9-day moving average is an indication the short-term trend remains negative. Negative momentum studies in the neutral zone will tend to reinforce lower price action. The next downside target is 102.01. ##BONDS: UNTIL THE SEPT RETESTS 101-05 A SOLID BOTTOM ISN'T IN PLACE * #S&P500 (SEP) 07/01/02: It is a mildly bullish indicator that the market closed over the pivot swing number. The daily closing price reversal down puts the market on the defensive. Underlying support comes in at 982.00 and 976.40, with overhead resistance at 998.20 and 1008.80. The market's short-term trend is negative as the close remains below the 9-day moving average. Momentum studies are trending higher from mid-range which should support a move higher if resistance levels are penetrated. The near-term upside objective is at 1008.8. NASDAQ (SEP): The downside closing price reversal on the daily chart is somewhat negative. The market's close below the 9-day moving average is an indication the short-term trend remains negative. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The market should run into resistance at 1070.50 and above there at 1091.75 with support at 1037.50 and 1025.75. Daily stochastics are showing positive momentum from oversold levels which should reinforce a move higher if near-term resistance is taken out. The next upside target is 1091.8. ##S&P500: DOWNTEND RESISTANCE LINES NOT VIOLATED UNTIL A RALLY ABOVE 1017 * ***This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Opinions expressed are subject to change without notice. This report should not be construed as a request to engage in any transaction involving the purchase or sale of a futures contract and/or commodity option thereon. The risk of loss in trading futures contracts or commodity options can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their financial condition. Any reproduction or retransmission of this report without the express written consent of Hartfield Management, Inc. is strictly prohibited. .ENDS }}