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))
Sunday night’s test of the 1.0750 bounce limit was reversed to gap down under prior lows Monday and test 1.0640. .Despite only filling the gap back up to Friday’s 1.0715 close and neutralizing its attraction above, an overnight rally gapped up and extended to fresh highs attacking 1.0825. Regardless of its catalyst, a second consecutive higher close on Wednesday would confirm a much larger rally underway. So, retesting Monday’s low requires reversing down Wednesday.

Gold Apr Contract (GC, ETF: (GLD))
Recovering 1198.00 (basis Apr, 1195.00 basis Feb) overnight extended higher Tuesday to fill the gap back up to 1212.00 (basis Apr, 1209.00 basis Feb). Closing Wednesday above 1215.50 would target 1233.50 and potentially 1257.00. Back under 1203.00 would instead signal a corrective bounce had ended, and a new downleg is likely underway.

Silver Mar Contract (SI, ETF: (SLV))
Chipping away at resistance Monday was rewarded by Tuesday’s gap up, test of the 17.63 objective, and fulfillment of the outstanding third higher close. Extending any higher would next target 18.71.

30-year Treasury Mar Contract (US, ETF: (TLT))
Renewed weakness and stocks may be as responsible Tuesday as it was Monday for avoiding the decline’s resumption. The reaction was greater, bouncing nearly 1 point up to 151-06. Regardless of its catalyst, the delay should end soon with FOMC due Wednesday.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Probing fresh lows overnight down to the ultimate 52.25 sell signal was reversed before the open, which gapped up and extended higher to test 53.55. Closing under the original 53.25 sell signal keeps alive the distributive pattern, but its recovery would likely test at least 54.25.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Tuesday’s open gapped down to 3.12 to immediately fill the last nearby gap outstanding below. Closing back above 3.25 would start to signal the drop had ended.

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))
Sunday night’s bounce touched the 1.0760 bounce limit, and then reversed down sharply to gap down under last week’s lows to test 1.0645. The morning’s bounce filled the gap back to Friday’s 1.0715 close.

Gold Feb Contract (GC, ETF: (GLD))
Bouncing Sunday night touched the 1195.00 higher prior low, whose recovery intraday is likely also to test 1209.00. Regardless of its degree the current bounce can’t be considered more than just a temporary correction.

Silver Mar Contract (SI, ETF: (SLV))
Firming Sunday night helps to keep in-play the potential not only for a higher high, but also for that to be sustained through the close to satisfy the rally’s requirement for at least one more higher close.

30-year Treasury Mar Contract (US, ETF: (TLT))
Gapping down slightly Monday after having firmed Sunday night was in-line with the corrective bounce measurements. Stocks dropping hard may have prevented the decline’s resumption in a flight-to-safety.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Flat-to-lower ranging at Monday’s open pierced the 52.50 sell signal that was attacked Friday, and which had been narrowly avoided on Wednesday. Finally breaking it after the detour would make it likely to be more productive faster.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Gapping down Monday confirmed that Friday’s intraday recovery was only a temporary correction, and that the attraction back down to and through the 3.12 low remained intact.