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))
Fluctuation between closes can’t be prevented, but it doesn’t necessarily affect the objective in-play. Tuesday night’s surge up to 1.1315 didn’t prevent opening flat-to-lower Wednesday and extending to the 1.1010 target. Potential to 1.0965 was fulfilled soon afterward by fresh lows testing 1.0940. Back above 1.0995 would signal the decline’s momentum was ending.

Gold Dec Contract (GC, ETF: (GLD))
Attacking the pullback’s 1266.00 target to within $2 overnight was recovered to sharply higher highs overnight testing 1338.00. Its reaction down Wednesday morning probed under the 1291.50 buy signal down to 1270.00. Now recovering 1284.00 would signal another rally leg, and prevent extending down to 1252.50.

Silver Dec Contract (SI, ETF: (SLV))
Surging overnight to test 19.00 was retraced entirely Wednesday morning to fill the gap back to Tuesday’s 18.30 close. An intraday retest of the overnight highs is likely before a durable decline would be credible.

30-year Treasury Dec Contract (US, ETF: (TLT))
Surging overnight to attack 165-02 was reversed down sharply, back under the 162-16 sell signal and through its minimum 160-10 objective to test 159-16. The decline extended intraday down to 158-22, next targeting 155-30 while bounces are likely to hold 158-04.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Already retesting the decline’s 43.75 target overnight and recovering to open Wednesday flat-to-higher has created potential for avoiding a new downleg. Closing above 44-30 helps to seal a bottom. Already testing 45.70 now requires breaking it to launch a rally to and through 48.25.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Wednesday’s open was essentially flat with the close of Tuesday’s gap down session. Extending down to 2.56 was recovered to the week’s “higher prior lows” at 2.74. The prior week’s higher prior lows above at 2.86 must be recovered to seal a bottom. Meanwhile, Thursdays open is not being greeted from a position of strength, although a bottom pattern does not require fresh lows..

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))
Extending down Tuesday can confirm Monday’s break from the failed Ascending Triangle, targeting 1.1010 and potentially 1.0965, so long as the rally’s 1.1100 is not recovered. Having originated from a failed Ascending Triangle, a complete recovery would be likely.

Gold Dec Contract (GC, ETF: (GLD))
Initially bouncing Tuesday to 1291.50 didn’t prevent retesting the 1284.00 pullback limit that was already broken through Monday’s close, and even deeper to attack 1273.00. Closing back above 1286.00 would undermine the selling pressure, but momentum reversing up requires a close back above 1291.50

Silver Dec Contract (SI, ETF: (SLV))
Gapping up slightly extended sharply higher Tuesday morning, filling the gap back to last Wednesday’s high close.Closing above prior lows keeps alive the upside momentum.

30-year Treasury Dec Contract (US, ETF: (TLT))
Finally breaking under the 162-16 sell signal Tuesday morning extended down to attack the 161-22 prior lows that had formed only a temporary bottom, still targeting fresh lows at 160-10.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Only firming slightly Tuesday suggests that the decline is not rejected and a new low will be in-play. But calculating the next lower target’s objective requires a corrective bounce to develop, targeting 45.70 or 48.25, perhaps in reaction to Tuesday’s post-close APA report and/or Wednesday’s EIA report.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Not even threatening to recover 2.88-2.91 Monday has resolved by gapping down again Tuesday to fresh lows testing 2.74. No scenario Wednesday would greet Thursday’s EIA report from a position of strength.