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))
Tuesday’s gap down back under the 1.1265 sell signal proved that Monday’s ranging around the 1.1300 prior high had held. But a second consecutive lower close Wednesday is needed for confirmation.

Gold Dec Contract (GC, ETF: (GLD))
Tuesday gapped down under a three-day consolidation that had ranged around 1341.50. Critical support at 1329.00 was tested by mid-morning, and still being tested through the afternoon. A second consecutive lower close Wednesday would confirm. Meanwhile, the break’s momentum requires bounces to hold 1332.00 as resistance.

Silver Dec Contract (SI, ETF: (SLV))
Gapping down Wednesday from Monday’s break under 19.75 was extended to 19.05 intraday, confirming that at least an eventual third lower close is now required. Bounces must meanwhile hold 19.35 to confirm momentum remains intact.

30-year Treasury Dec Contract (US, ETF: (TLT))
Gapping up Tuesday above Monday’s 168-22 high avoided it being a false break. Its second consecutive higher close confirms the breakout, and now requires at least an eventual third higher close. The likely minimum objective is 170-02.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Tuesday’s gap down retraced Monday’s recovery of Friday’s plunge. Filling the gap back down to Friday’s 44.55 close does neutralize its attraction below, but it’s not a buy signal. Closing back above 45.00 would signal the rally is resuming. There’s otherwise risk in even the most bullish pattern for a detour to 42.25.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Tuesday’s flat-to-higher firming didn’t reject Monday’s bounce from Friday’s test of “lower prior highs.” But Tuesday’s firming was too shallow to confirm a reversal underway. Nevertheless, almost any initial strength Wednesday would be credible for extending higher intraday

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 up to Thursdays 1.1300 high did probe slightly higher intraday to 1.1320, but essentially only ranged around 1.1300. Almost any initial weakness Tuesday would be credible for extending down into a new downleg.

Gold Dec Contract (GC, ETF: (GLD))
Only slight overnight weakness into Monday’s open was easily absorbed. The attempt to break under 1341.50 support wasn’t necessarily rejected, but almost any credible downleg should be obvious by Tuesday morning.

Silver Dec Contract (SI, ETF: (SLV))
Gapping down Monday was recovered to test 19.75 as resistance, but the test held and its sell signal triggered. Recovering 19.85 without delay Tuesday morning would invalidate Monday’s break, and could marginalize sellers into next week. Otherwise, fresh lows would soon be in-play.

30-year Treasury Dec Contract (US, ETF: (TLT))
Gapping up only to Thursday and Friday’s highs still created an Ascending Triangle pattern targeting at least 168-22. The target’s test intraday creates a requirement either to close above it for a breakout, or to react down and continue forming a bottom.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Already having confirmed a breakout, Friday’s plunge to 44.25 opened a buying opportunity for that recovery. Monday’s gap up back above the 45.00 buy signal extended higher intraday to  retrace all of Friday’s drop.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Ending last week with a pullback down to “lower prior highs” had both expended and satisfied enough selling pressure to enable a new upleg to being. Closing above 3.04 would confirm..