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))
Similar to the follow-through from Friday’s gap down and intraday recovery, the next session only ranged narrowly, remaining under 1.1265 resistance. Not extending the recovery higher continues to suggest the dips are chipping away at support before extending down.

Gold Dec Contract (GC, ETF: (GLD))
Fresh lows Wednesday fulfilled the next lower objective at 1266.00 by $2. Closing under Tuesday’s low is a second consecutive lower close that now requires at least an eventual third lower close before any recovery could be durable.

Silver Dec Contract (SI, ETF: (SLV))
Wednesday’s fresh lows under 17.60 can extend lower so long as 17.85 holds bounces. Otherwise, closing back above 18.00 would start to signal momentum reversing up, at least initially for a sizeable bounce.

30-year Treasury Dec Contract (US, ETF: (TLT))
The two-week old low’s consolidation was probed more deeply Wednesday down to 165-09. But just closing back above 165-20/165-30 maintains that this week’s drop can be only a temporary correction. Firming Thursday would allow Friday’s Employment Situation report to be greeted from a position of strength and momentum.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Fulfilling the rally’s 49.00 target did not end the upside momentum, especially so long as pullback limits are held. Wednesday’s gap up now raises the pullback limit to 48.35.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Gapping down slightly Wednesday was optimal for restraining optimism of Tuesday’s intraday recovery from initially probing negative territory. The pattern repeated itself Wednesday, recovering back into positive territory again. Filling the gap back up to 3.04 without closing decisively above it would be vulnerable to an initially negative knee-jerk reaction down on Thursday’s EIA report, but the pattern remains likely to recover.

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))
Repeating Friday’s gap down under prior lows also repeated Friday’s dramatic recovery back above 1.1265. A little less so on Tuesday, reacting down from filling the gap back up to Monday’s close. Regardless, the trend remains down so long as 1.1265 is not recovered.

Gold Dec Contract (GC, ETF: (GLD))
Gapping down and then plunging at Tuesday’s open quickly fulfilled the longstanding 1296.00-1297.00 target, probing under it down to 1283.60. But consolidating there resolved down sharply, too, to 1269.00, next targeting 1266.00 so long as bounces hold 1293.00-1294.50.

Silver Dec Contract (SI, ETF: (SLV))0
The longstanding retest of 18.45 was met soon after Tuesday’s initial opening plunge. Then it was probed considerably down to 17.75. Bounces have room up to 18.25 whether maintaining the decline’s momentum or forming a bottom

30-year Treasury Dec Contract (US, ETF: (TLT))
Although Monday’s narrow ranging around Friday’s 167-30 low had only failed to reject its dip, and did not actually signal extending down, Tuesday did extend down to sharply lower lows at 166-12. This tests natural support back down to “lower prior highs” of the original bottoming pattern, and back above 167-00 would signal the pullback had ended.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Having met its 49.00 target after Monday’s close, and then retesting it eventually Tuesday morning. The test held as resistance, but it was not rejected, and there is no change to the 47.95 pullback limit.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Recovering Monday from filling the next lower gap still needed to hold a retest of Monday’s low for any credible bottom to form so quickly. Tuesday’s low only retested the 2.88 gap before reversing up sharply into positive territory at 2.97. That’s bullish enough to suggest that any initial follow-through Wednesday not gapping up significantly would be credible for extending higher intraday.