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 Mar Contract (EC, ETF: (FXE, UUP))
Having fulfilled a third higher close requirement Tuesday, an overnight dip gapped down into Wednesday’s open. The entire dip was recovered to fill the gap back up to Tuesday’s 1.2326 high. The trend doesn’t reverse down until breaking under 1.2210.

Gold Feb Contract (GC, ETF: (GLD))
Retesting Friday’s 1344.50 post-close high overnight held again as resistance, reacting down into Wednesday’s open and extending down momentarily to 1331.00. Rallying sharply into the afternoon tested 1341.00, leaving the rally’s momentum intact.

Silver Mar Contract (SI, ETF: (SLV))
Overnight firming was retraced into Wednesday’s open, and slightly lower to test 17.05. Closing back above 17.30 would signal again another probe underway to higher highs.

30-year Treasury Mar Contract (US, ETF: (TLT))
Still holding above 150-16 at Wednesday’s close kept alive the likelihood for a bigger corrective bounce up to 151-26 — although resistance has appeared at 151-16 which could be difficult to recover before resuming the decline.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Still ranging flat-to-lower, but not trending down or breaking under the 63.15 pullback limit, doesn’t reject the rally’s momentum. So, despite already fulfilling its 64.75 target, closing above 64.25 could resume the rally to higher highs.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Thursday’s EIA report is being greeted from a position of strength for probing fresh recovery highs. Peaking Wednesday at the 3.29 target does open the door to a corrective dip, but a dip should be only corrective if triggered as a reaction to news.

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 Mar Contract (EC, ETF: (FXE, UUP))
The holiday weekend’s gap up was preserved into Tuesday. That required a lot of energy, which has now been fulfilled, so any new weakness would be credible for extending down. By implication, any new weakness could be a significant turning point for the USD.

Gold Feb Contract (GC, ETF: (GLD))
Friday’s post-close rally to fresh highs and its extension Sunday night up to 1345.00 were retraced entirely overnight. Tuesday’s flat open eventually firmed into the close, barely jeopardizing the buy signal that had already triggered through Friday’s open.

Silver Mar Contract (SI, ETF: (SLV))
Friday’s post-close rally above 17.15 to fresh highs and its extension Sunday night to 17.45 were retraced entirely overnight to pierce under Thursday’s 16.85 low. Recovering to unchanged into Tuesday’s open later closed 5-10 cents higher to suggest another rally attempt will be underway.

30-year Treasury Mar Contract (US, ETF: (TLT))
Bounce potential to 150-16 had been tested, and then extended Monday night to make the bounce potential to 151-26 also likely to be tested before resuming the decline. Tuesday’s test of 151-00 reacted down but held 150-16 to keep alive the potential for extending the temporary bounce.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
The bounce from Friday’s dip to the 63.15 pullback limit persisted into Tuesday’s open, albeit still short of the rally’s 64.75 that had been tested already.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Gapping down from Friday’s test of the rally’s initial 3.17 target had room down to “lower prior highs” at 3.05, which were tested overnight. Holding the pullback limit’s test through the morning was recovered to fill the gap back up to 3.17.