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))
Ranging narrowly Tuesday did not affect the pattern’s 1.0655 target that remains in-play so long as bounces hold 1.0835.

Gold Dec Contract (GC, ETF: (GLD))
The bounce off of Monday’s 1211.00 low didn’t much extend Tuesday, and more fluctuated in slightly positive territory, keeping alive the 1206.00 and 1196.50 targets.

Silver Dec Contract (SI, ETF: (SLV))
Bouncing Tuesday held 17.10 resistance to maintain the likelihood of retesting Monday’s 16.62 low.

30-year Treasury Dec Contract (US, ETF: (TLT))
Tuesday’s range was relatively narrow compared to Monday, which undermines the credibility of any recovery attempt before Friday. And possibly also Monday, while a bigger bottom can start forming and should revisit at least 153-07.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Gapping up more than $1 to 44.55 Tuesday extended another $1 intraday. Now holding 44.15-44.30 would allow the rally to extend, potentially targeting 48.25.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Gapping up to test 2.80 could have extended higher Monday, but Tuesday’s attempt wasn’t likely to extend. But its intraday reaction down should still extend to fill the gap back to Friday’s 2.62 close, and possibly also probe the 2.55 low.

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 extended sharply through the open to test 1.0725. So long as 108.30 holds as support, the next lower objective in-play is 1.0655.

Gold Dec Contract (GC, ETF: (GLD))
Overnight weakness extended down intraday to 1211.00. Bouncing $7 into positive territory at 1231.00 then reacted back down to close in negative territory. The next lower objective is 1196.50, with some potential support at 1206.00.

Silver Dec Contract (SI, ETF: (SLV))
Gapping down Monday extended sharply lower through the morning to 16.62, is all the allowable room for noise on a retest of last months’ 17.11 overnight low. Any lower — especially through the close — would suggest a much deeper drop underway. It’s premature for a bottom to begin forming, but a steep temporary corrective bounce is possible.

30-year Treasury Dec Contract (US, ETF: (TLT))
Dropping Sunday night more than 2-1/4 points to 152-24 was recovered almost entire before Monday’s open, but still gaped down to 154-00 and dipped less deeply intraday. The gap back up to Friday’s close held when another bounce filled it. It’s not premature for a bottom to begin forming, but it’s too soon for a recovery to begin.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Monday’s open gapped down and probed fresh lows to 42.20. Bouncing back up to unchanged and higher has created an opportunity to bottom. Any strength above 44.15-44.30 would be credible for reversing momentum up.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Gapping up and extending to 2.78 Monday stopped short of 2.80, which would actually signal momentum reversing up. Filling the gap back down to Friday’s 2.62 is now required before a durable bottom can form.