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))
Already extending higher Monday night to gap up Tuesday put the session on-track to fulfill the required eventual third higher close from Wednesday’s confirmed breakout. A pullback has room below to test “lower prior highs” at 1.1230 without reversing momentum down.

Gold Feb Contract (GC, ETF: (GLD))
Reacting down from just below the rally’s 1203.00 target didn’t get very far before trending back up into Tuesday’s open. The intraday action ranged narrowly sideways.

Silver Mar Contract (SI, ETF: (SLV))
Testing the rally’s 15.45 target Monday didn’t extend any higher overnight. Ranging sideways through the day kept alive potential for probing higher, but makes higher highs more vulnerable to reacting down sharplyl.

30-year Treasury Mar Contract (US, ETF: (TLT))
Having blown through the rally’s original 162-24 target last week up to 164-07, and then probing that Monday up to 166-01, extending sharply higher Monday night to 167-09 isn’t terribly shocking. Or shouldn’t be. But the rally’s relentlessness is nonetheless impressive, as it repeatedly holds pullback limits, which is now 165-08/165-12. Under 164-28 would start to signal momentum reversing down.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Failing to hold the new 29.55 pullback limit Monday night broke lower Tuesday morning and extended down sharply into the afternoon to 27.75. Fresh lows under 27.56 are targeting 26.40, with room for noise around that down to 25.65.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Dipping Monday night to test 2.06 support rallied Tuesday morning to 2.13. But the balance of the session settled back down to the 2.10 pullback limit.

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))
Friday’s dip has stopped optimistically short of filling the gap back to Wednesday’s 1.1095 close, but Monday’s gap down came within 1 pip before reversing up into positive territory above 1.1200, potentially on the way to fulfilling the outstanding minimum higher close.

Gold Feb Contract (GC, ETF: (GLD))
Friday’s post-close extension higher wasn’t retested Sunday night until nearing Monday’s open, and then it extended sharply through it to nearly fulfill upside potential at 1203.00 compensated for the delay. Now a pullback has room down to 1185.00-1186.00 before signaling the rally’s momentum has lapsed.

Silver Mar Contract (SI, ETF: (SLV))
Having held its pullback limit last week, the upside momentum remained intact for at least testing the bottoming pattern’s 15.45 target. Now pullbacks must hold tests of 15.30 to keep alive the upside momentum.

30-year Treasury Mar Contract (US, ETF: (TLT))
Plunging stocks triggered a flight-to-safety that surged through last week’s 164-07 high to test resistance at 165-28. Now holding 165-08/165-12 avoids signaling the rally’s resumption has failed (albeit pretty successful in the interim).

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Lower lows Sunday and Monday were still range-bound, although  last week’s test of the 29.42 pullback limit was attacked. But just closing under 29.55 would target fresh lows at 27.40..

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Gapping up overnight and testing 2.17 was retraced to at least attack 2.10, near enough to “lower prior highs” that extending higher intraday Tuesday could confirm the recovery without leaving “unfinished business below” to inhibit further rallying.