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))
Monday’s test of the breakout’s 1.1485 target was also a second consecutive higher close in the pattern which requires at least an eventual third higher close. Tuesday was not it, as price shallowly backed-and-filled.

Gold Feb Contract (GC, ETF: (GLD))
The confirmed breakout finally probed above Sunday night’s highs, gapping up and hovering at fresh highs. While that fulfills the breakout’s minimum required third higher close, the pattern still has potential for extending to its 1319.50 target.

Silver Mar Contract (SI, ETF: (SLV))
Tuesday’s gap up to the downtrending channel’s high held its test intraday, just as Monday had held a test of the channel’s lower connector. Tuesday also fulfilled the confirmed breakout’s third higher close requirement, so the pattern isn’t required to extend any higher.

30-year Treasury Mar Contract (US, ETF: (TLT))
Recovering immediately again through 145-12 Tuesday not only rejected Monday afternoon’s rejection of the open’s similar setup, but also maintained the recovery and extended above Monday’s highs to signal at least a corrective bounce underway. Wednesday’s FOMC policy statement is being greeted from a position of strength.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Monday’s gap down and intraday extension was likely an anomaly and unlikely to launch a new downleg. Tuesday’s gap up back to Monday’s open extended higher intraday to suggest as much, as well. A second consecutive higher close Wednesday would confirm, but it’s too late to qualify Tuesday’s recovery as greeting Wednesday’s EIA report from a position of strength.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Rolling coverage forward from Feb to Mar, and giving the pattern that session to coordinate the rollover for new parameters that could absorb Monday’s excessive drop.

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))
Flat-to-higher ranging overnight extended Monday morning to fulfill the likely 1.1485 objective. Closing above it would signal a new upleg underway. That’s likely since Monday’s extension qualifies as a second consecutive higher close above the downtrending resistance pattern that Friday had broken already.

Gold Feb Contract (GC, ETF: (GLD))
Fresh highs overnight up to 1303.70 had been retraced pre-open but largely recovered Monday. The second consecutive higher close confirms the next higher target at 1319.50 remains in-play.

Silver Mar Contract (SI, ETF: (SLV))
Probing higher overnight to 15.83 had been retraced pre-open but largely recovered intraday, at least to the 15.75 prior high’s resistance that must be recovered to resume the preceding rally. Monday’s second consecutive higher close suggests the rally is resuming anyway.

30-year Treasury Mar Contract (US, ETF: (TLT))
Monday’s open immediately surged enough to probe 145-08 and 145-12 whose recovery through the close would suggest the correction of Thursday’s breakout had ended and momentum was reversing up.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Gapping down Monday to 52.75 had needed to hold to maintain near-term upside potential, but extended to attack the 51.25 lower-end of the current range under 51.65. Breaking under the range would make further upside unlikely before at least a detour below.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Sunday night’s gap down probed last week’s lows and attacked prior lows down to 2.89. The Thursday-Friday recovery setup depends upon closing above 2.95-3.05 through Monday-Tuesday to maintain the bottoming pattern.