Bigger Picture

A daily summary of high-profile members of several complexes… View a more detailed discussion of each chart at the end of today’s Market Wrap.

Eurodollar Jun Contract (EC, ETF: (FXE, UUP))
The bottoming opportunity followed Gold’s plunge to fail holding its 1.1960 and 1.1890 pullback limits. The gap down was above prior lows so an immediate recovery wouldn’t be problematic, so  we’ll continue monitoring for a potential bottom.

Gold Jun Contract (GC, ETF: (GLD))
Already trending down under 1316.00 after Monday’s close, and extending down sharply overnight, Tuesday gapped down under all prior lows and extended much deeper to fulfill the outstanding 1294.00 objective The trend remains down so long as bounces now hold 1298.50 as resistance.

Silver Jul Contract (SI, ETF: (SLV))
Closing Monday in a test of the 16.65 pullback limit had avoided signaling the corrective bounce was done. But it was done nonetheless, extending down much deeper overnight into Tuesday. Not to fresh lows — in fact, stopping optimistically short of filling the two week-old gap back down to the 16.15 low close. The trend remains down so long as bounces now hold 16.55.

30-year Treasury Jun Contract (US, ETF: (TLT))
There was no reason to further delay breaking lower Monday if that were the pattern’s objective. It did, and despite bouncing to 143-19, Tuesday’s open was greeted by gapping down and extending down to fresh lows at 141-01. That is a second consecutive lower close from a multi-session range, confirming its breakout and now requiring an eventual third lower close.

Crude Oil Jul Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
More narrow ranging in both positive and negative territory Tuesday continue delaying the rally’s resumption to its 74.10 objective. But it also entrenches the uptrend and creates a position of strength that the pattern often exploits when trending slows without being rejected.

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Probing a fresh recovery high Tuesday pierced the two-week old 2.44 high up to 2.85 whose recovery would start to signal a bigger rally underway. The balance of the session fluctuated narrowly around unchanged, back into negative territory. Meanwhile, the decline remains vulnerable to resuming on a close under 2.78.

A daily summary of high-profile members of several complexes… View a more detailed discussion of each chart at the end of today’s Market Wrap.

Eurodollar Jun Contract (EC, ETF: (FXE, UUP))
Monday’s open quickly extended through the lower-end of the 1.1975-1.2025 buy signal to touch its upper-end, still needing to close higher to signal the a reversal underway. Dipping from the open held the range’s lower-end.

Gold Jun Contract (GC, ETF: (GLD))
Gapping down Monday held above 1316.00 whose break would end the corrective bounce without needing to fulfill its 1329.00 potential first.

Silver Jul Contract (SI, ETF: (SLV))
Already having fulfilled the minimum 16.80 bounce potential, Monday’s dip back down to the 16.65 sell signal threatened to reverse the trend back down. Closing under it would be credible for resuming the decline.

30-year Treasury Jun Contract (US, ETF: (TLT))
Higher prior lows had been tested, gaps had been filled, and the buy signal had been threatened. There was no excuse to further delay another break under the 143-07 sell signal Monday, which extended down to attack Thursday’s 142-17 low. That stopped optimistically short before retracing 61.8% back up to Friday’s close. A second consecutive lower close Tuesday is still needed to confirm another downleg underway.

Crude Oil Jul Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Overnight weakness tested the 70.25 pullback limit to within 1 penny. Narrow intraday ranging Monday didn’t exploit having contained the dip, keeping alive potential for a deeper detour down on the way up to 74.10.

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Overnight strength continued firming Monday to test the two-week old 2.85 high that had ended the last rally attempt. Closing back under 2.80 is the nearest sell signal.