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 Dec Contract (EC, ETF: (FXE, UUP))
This week’s two gaps down did not extend down intraday. Wednesday didn’t gap down, but trended back up to the 1.1830 sell signal, filling the gap back up to Monday’s close. There is little excuse to further delay extending down to 1.1760, let alone to break under it and to trend down.

Gold Dec Contract (GC, ETF: (GLD))
Tuesday’s drop to 1288.00 extended down overnight to probe the 1277.50-1280.50 targeted support. Post-open action ranged flat-to-higher, but exclusively in negative territory. Closing back above 1288.00 would signal the correction had ended, allowing the recent rally to resume. Extending any deeper would target 1273.00, if not also 1269.00, while still being considered only a temporary correction.

Silver Dec Contract (SI, ETF: (SLV))
Gapping down Wednesday under Tuesday’s 17.20 low didn’t extend lower, and the session ultimately fluctuated choppily around 17.20. Closing back above 17.11 would signal the correction had ended without extending to 16.75 first.

30-year Treasury Dec Contract (US, ETF: (TLT))
Wednesday’s gap down to test “lower prior highs” at 152-26 doesn’t invalidate the recovery, and introduces a buy signal that would be triggered back above 153-14.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Wednesday’s gap up to Monday and Tuesday’s highs soon reacted down into Tuesday afternoon’s range, and held, barely recovering into positive territory. The 52.65 objective remains intact.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Tuesday’s reversal from having gapped up to the sell signal at 3.00 had reversed down intraday to 2.95. Wednesday’s gap down to the sell signal’s 2.89 target extended lower intraday to within 4-5 cents of potential for filling the gap outstanding from the two-week old low close.

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 Dec Contract (EC, ETF: (FXE, UUP))
Monday’s gap down from Friday’s intraday round trip gapped down Tuesday to attack 1.1760. Neither session extended down intraday — Tuesday firmed to attack Monday’s 1.1830 close. Breaking under 1.1760 remains likely and likely to extend down sharply.

Gold Dec Contract (GC, ETF: (GLD))
Monday’s failure to confirm Friday’s opening surge extended down sharply overnight to test the pivotal 1288.00 level. Closing any lower would next target a complete correction to 1277.50-1280.50. Probing it intraday attacked 1283.00, which would allow a correction to end by rejecting a fresh low Wednesday morning.

Silver Dec Contract (SI, ETF: (SLV))
Dipping Monday to attack 17.30 support extended lower overnight to open Tuesday at 17.11. Extending down lower through the morning tested 17.00, whose break would target 16.85.

30-year Treasury Dec Contract (US, ETF: (TLT))
Narrow ranging overnight found strength Tuesday morning, recovering to attack Friday’s 154-5 highs. That’s not yet sufficient to confirm the rally is resuming.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Overnight strength stopped short of Monday morning’s high, and then Tuesday morning dipped on peace seeming to break out between Iraq and the Kurds. The gap back down to Friday’s 51.40 close was filled, neutralizing its attraction below, and maintaining the minimum 53.65 upside objective.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Despite still having at least 1 cent remaining in its minimum pullback objective to 2.92, rallying overnight returned to  the 3.00 pullback limit which had broken lower Sunday night. It was eventually probed up to 3.02, but the afternoon reacted down to 2.96, stopping optimistically short of filling the gap back to Monday’s close, still having potential down to 2.89 and 2.82.

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 Dec Contract (EC, ETF: (FXE, UUP))
Monday’s gap down to 1.1820 all but confirms that Friday’s picot reversal-like pattern has overwhelmed the corrective rally whose next higher objective is otherwise 1.1970.

Gold Dec Contract (GC, ETF: (GLD))
Monday didn’t reject Friday morning’s surge through 1296.50. But gapping up didn’t extend higher, and instead dipped back down to Friday morning’s high. But there’s still room down to 1296.50 before reversing momentum down.

Silver Dec Contract (SI, ETF: (SLV))
Gapping up Monday to test 17.59 was retraced back down to Friday’s 17.37 high. Closing under 17.30 would reverse the trend back down at least for a correction down to 17.00.

30-year Treasury Dec Contract (US, ETF: (TLT))
Flat-to-lower ranging Monday held the 153-14 level whose recovery Friday all but confirms the bottom has fully formed and already reversed the trend up.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Gapping up Monday to test 52.35 was reversed through the morning for a shallow pullback. The 3-week old 52.65 gap up above all prior highs still require a retest, which is likely on this leg.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Essentially meeting both corrective bounce targets at 3.00 and 3.04 last week, Sunday night’s slide greeted Monday’s open back at 2.92. This puts into play a retest of 2.89, for which there’s no bullish reason to retest — only to break lower targeting 2.84.