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 Jun Contract (EC, ETF: (FXE, UUP))
Australia’s surprise overnight rate CUT produced a test of the 1.1600 target. Closing above it would trigger higher targets, but otherwise there is no unfinished business above. Closing negative Tuesday makes Monday’s 1.14.85 low a sell signal.

Gold Jun Contract (GC, ETF: (GLD))
Monday’s choppy sideways ranging didn’t launch an immediate rally Tuesday, so any later probe higher is likely to hold a test of the 1312.50 target that closing above 1285.00 had triggered — so long as 1285.00 holds as support, which was tested Tuesday.

Silver Jul Contract (SI, ETF: (SLV))
Tuesday’s pullback held a test of 17.50 to avoid signaling momentum reversing down. Meanwhile, a retest of the 18.05 area highs remains likely, and higher highs would resume the rally targeting 18.80.

30-year Treasury Jun Contract (US, ETF: (TLT))
Closing Monday under 162-12 was rejected by Tuesday’s gap up to and through recent 163-12 highs. Extending higher intraday to test 164-08  produced the third higher close required by last week’s confirmed breakout. Not reversing down immediately under 163-12 could extend to 165-00.

Crude Oil Jun Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
The pullback extended lower Tuesday and probed under the 43.85 sell signal. This should define the pullback to keep alive near-term potential to produce a required fresh high close. So, the sell signal’s test is suspicious, and rejecting it Wednesday wouldn’t be surprising.

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Gapping up above 2.07 prior lows on Tuesday negated Monday’s late break that had closed lower. But the gap back down to Monday’s 2.03 close should be filled before a reliable rally leg can begin — which might help to explain why the gap up never improved 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 Jun Contract (EC, ETF: (FXE, UUP))
Friday’s confirmation of Thursday’s breakout had gapped up sharply and extended higher intraday. But that didn’t undermine its credibility for serving as confirmation, and for requiring yet another higher close. Not necessarily an immediate higher close, although Monday produced it. The next higher objective in-play is 1.1600 so long as pullbacks hold tests of Monday’s 1.1510 open.

Gold Jun Contract (GC, ETF: (GLD))
Closing above 1286.00 Friday had put into play the next higher objective at 1312.50. Monday’s gap up attacked the target, which remains in-play so long as pullbacks now hold 1286.00 as support.

Silver Jul Contract (SI, ETF: (SLV))
Probing Friday’s high above 18.05 Monday prevented the subsequent reversal down from forming an Island top. But there is room down to 17.50 or even to 17.35 before undermining the next upleg targeting 18.80.

30-year Treasury Jun Contract (US, ETF: (TLT))
Despite Friday’s higher close having confirmed Thursday’s breakout and now requiring an eventual third higher close, Monday’s opening dip  kept the door open to testing prior lows around 161-00 before extending the rally to its 165-00 target.

Crude Oil Jun Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Monday’s weakness further delayed producing the third higher close still outstanding from last week’s confirmed breakout. Pullbacks meanwhile have room down to 43.85 without reversing momentum down.

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Friday’s rally had closed high enough to undermine downside momentum,  but not high enough to reverse momentum up. Undermined downside momentum didn’t prevent  gapping down Monday to test Thursday’s lows and previous “lower prior highs” around 2.08. .