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 Sep Contract (EC, ETF: (FXE, UUP))
Closing above the 1.1970 objective Monday extended sharply higher overnight to 1.2082. Already dipping into the open, Tuesday trended down to almost fill the gap back to Monday’s 1.1922 close. Overnight highs would like to be retested, but a deeper pullback to 1.1945 can’t be dismissed.

Gold Dec Contract (GC, ETF: (GLD))
Missiles flying always brings out the best in Gold. And having closed above 1313.00 Monday it surged through its 1322.00 target to 1332.00. Tuesday’s open was $2 off the high, and trended back down to 1319.00 pullback limit. The next lower support is 1310.50 to keep alive the near-term likelihood of retesting the overnight high.

Silver Sep Contract (SI, ETF: (SLV))
Higher highs overnight at 17.67 were backing off a little into Tuesday’s open, still short of the 17.80 target. Trending back down intraday largely held positive territory while filling the gap back to Monday’s 17.45 close.

30-year Treasury Sep Contract (US, ETF: (TLT))
The flight-to-safety trade resumed with a vengeance, extending sharply higher overnight to fresh highs at 158-04. Trending back down post-open twice stopped optimistically short of filling the gap back to Monday’s 156-23 close. The overnight high’s retest is likely so long as 156-16 holds as support.

Crude Oil Oct Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Narrow sideways action greeted Tuesday’s session which only traded flat-to-lower through the morning. The next lower objective at 45.50 remains intact, presumably on the way to retesting the lows.

Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
Monday’s post-open rally off of gapping down was able to test 2.98 resistance. Its reaction filled the gap back down to Monday’s close under 2.95 and recovered back to the open’s high. Almost any initial strength Wednesday would be credible for extending higher, and for dismissing the potential for a deeper pullback targeting 2.84.

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 Sep Contract (EC, ETF: (FXE, UUP))
Already having spiked up into the weekend, gapping up Sunday night touched the 1.1955-1.1970 target area’s upper-end. Its reaction down was recovered entirely through the morning, and extended to fresh highs attacking 1.2000.

Gold Dec Contract (GC, ETF: (GLD))
Friday’s retest of the 1288.00 sell signal was deeper than Tuesday, and its reaction still held a test of its prior high. But it was a second failure to extend lower, which Sunday night exploited by rallying into Monday morning’s test of the 1302.00 buy signal. A second leg surged to its 1313.00 target, and through it to also test 1315.00, next targeting 1322.00.

Silver Sep Contract (SI, ETF: (SLV))
The 16.90 sell signal had held two tests as support and closed back at its prior high, while testing what had been the rally’s 17.05 pullback limit. Sunday night probed higher to test its 17.20 buy signal into Monday’s open. Reacting down toward unchanged was reversed up by another upleg attacking 17.50, all but ensuring 17.80 is targeted.

30-year Treasury Sep Contract (US, ETF: (TLT))
Ranging narrowly Sunday night while stocks were battered about does reflect a degree of stability to keep alive the likelihood for one more probe higher. But it also reflects some complacency creeping in to suggest that one more probe higher may be final.

Crude Oil Oct Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Friday’s bounce back up to the 47.95 sell signal resolved down sharply Monday morning to fresh lows at 46.15, which should not be retested at this stage unless the next downleg is actually getting underway. the next lower support is at 45.50.

Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
[Rolling coverage forward to Oct, which is trading at a 2-3 cent premium to Sep]. Dropping overnight extended to fresh lows at 2.88 within a nickel of the 2.84 target. A post-open surge tested 2.98 briefly, which the decline would marginalize as noise by closing back under 2.94.