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))
Despite the rally already having fulfilled its 1.2035 upside, and despite a confirmed sell signal, a strong overnight rally triggered by German political news created a gap up to new highs testing 1.2200. Extending higher into the weekend suggests probing at least some fresh high at some point Monday, regardless of the session’s resolution, and regardless of whether it is maintained through Tuesday.

Gold Feb Contract (GC, ETF: (GLD))
Rallying through the week’s earlier 1328.00 overnight high to 1334.00 needed only to close above the week’s 1323.50 intraday high to signal a new upleg underway. The open’s plunge to 1321.00 was recovered to attack the overnight highs, and higher to 1336.00. Post-close action tested 1339.00. A second consecutive higher close would confirm the breakout.

Silver Mar Contract (SI, ETF: (SLV))
Thursday’s tests of the 16.95 sell signal had held, and sympathy with Gold enabled an overnight bounce to 17.20. Its post-open reaction down lunged to almost touch 16.95, and then recovered back up to the open’s highs. Extending higher through the close suggests a new rally leg is underway.

30-year Treasury Mar Contract (US, ETF: (TLT))
Friday’s open was greeted with narrow ranging, and still having potential for a bigger corrective bounce up to “higher prior lows” beginning at 150-16 or 151-26.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Thursday’s reaction down from testing the longstanding 64.75 target extended down to test the 63.15 pullback limit, which held, and reacted up to 64.25.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Firming overnight gapped up Friday and extended to probe the rally’s first objective at 3.17 by a nickel, still having potential for extending up to 3.29.

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))
Tuesday night’s surge had reversed back down throughout Wednesday’s session, but maintained its second consecutive lower close to require another eventual lower close. Thursday’s gap up back to Tuesday night’s high extended intraday to fill the gap back up to Friday’s 1.2100 close. There is no outstanding attraction above, and back under 1.2030 would resume the decline.

Gold Feb Contract (GC, ETF: (GLD))
Narrow ranging Thursday morning after Tuesday night’s surge to fresh highs doesn’t reject the rally attempt, and almost suggests that it will be retried and extend. Meanwhile, the 1308.85 sell signal remains valid.

Silver Mar Contract (SI, ETF: (SLV))
Thursday’s flat-to-lower ranging pierced the 16.95 sell signal momentarily during the morning, and closed back at it. Any initial weakness would be credible for extending down.

30-year Treasury Mar Contract (US, ETF: (TLT))
Wednesday’s session-long bounce still closed negative, confirming Tuesday’s breakout and requiring another eventual lower close. Bounce potential to higher prior lows around 150-26 or 151-16 remains alive, despite already filling the gap back up to Tuesday’s 150-08 close and holding.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
The longstanding 64.25-64.75 target was fulfilled at Thursday morning’s high, which traded out the session flat-to-lower. Back under 63.15 would reverse the trend down.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Thursday’s EIA report was greeted from a position strength, and also from gapping up. Extending higher through the morning retested last week’s 3.07 highs, and a second consecutive higher close on Friday would confirm 3.17 and 3.29 are in-play.