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 Sep Contract (EC, ETF: (FXE, UUP))
Monday’s gap up helped to invalidate Friday’s break to fresh lows, and to keep alive the likelihood for retesting last week’s 1.1400 high close. Gapping down Tuesday to retest Monday’s lows must avoid closing negative to maintain that recovery potential.

Gold Aug Contract (GC, ETF: (GLD))
Choppy trading overnight and Tuesday didn’t reject Monday’s gap up and intraday extension, keeping alive this leg’s 1312.00 target.

Silver Jul Contract (SI, ETF: (SLV))
Tuesday’s fluctuation didn’t threaten reversing momentum down, which keeps alive the 17.60 target of this upleg.

30-year Treasury Sep Contract (US, ETF: (TLT))
Breaking above 168-00 Friday had signaled a new upleg underway, which was confirmed by not rejecting it Monday. Attacking 170-00 Tuesday must now hold 169-00 on pullbacks to maintain upward momentum next targeting 171-24.

Crude Oil Jul Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Monday’s intraday bounce testing 49.00 was extended down overnight to fresh lows attacking 48.00. The session’s “ineffectual optimism” avoided fresh lows without any reward, so the decline should accelerate without delay if its momentum remains intact.

Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Still inhibited by the lack of any recent pullback, dipping prior to Tuesday’s open reveals the rally’s risk in trying to extend higher without a correction.

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 Sep Contract (EC, ETF: (FXE, UUP))
Gapping up Monday and extending higher intraday helps to confirm that Friday’s break lower was false. A second consecutive higher close Tuesday would confirm last week’s 1.1400 high close is being targeted, and potentially also 1.1550.

Gold Aug Contract (GC, ETF: (GLD))
Gapping up sharply Monday to test 1290.00 found resistance, but did not reject the second consecutive gap’s recovery. Fresh relative highs targeting 13112.00 are likely so long as pullbacks now hold 1280.00.

Silver Jul Contract (SI, ETF: (SLV))
Firming into the new week keeps alive potential for this leg to reach 17.60 which would be vulnerable to reversing down if Gold were simultaneously fulfilling its objective.

30-year Treasury Sep Contract (US, ETF: (TLT))
Friday’s fresh highs were maintained but not extended while stocks tested and retested Friday’s lows. Not immediately rejecting Friday’s fresh highs doesn’t prevent dipping anyway, but it makes a dip likely to recover and to resume the rally.

Crude Oil Jul Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Friday’s break under the 50.15 sell signal gapped down deeper Monday. Bouncing intraday held 49.00 resistance before reversing back down in the afternoon, as the capitulation pattern presumably develops.

Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Not yet dipping to a more constructive pullback test like 2.51 or 2.47 probably inhibited Monday’s gap up from being more productive than momentarily piercing Friday’s high. Spending the entire session in positive territory formed “ineffectual optimism,” which can’t afford to hesitate extending higher Tuesday to avoid even deeper pullback potential.