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))
Exploiting Wednesday’s gap fill and extending higher Thursday through 1.0950 was partially rejected by gapping down  Friday back under 1.0950 and extending down sharply.

Gold Feb Contract (GC, ETF: (GLD))
Flat-to-lower ahead of Friday’s open was able to hold the 1114.00 pullback limit again, but shouldn’t further delay extending the rally if its momentum remains intact.

Silver Mar Contract (SI, ETF: (SLV))
Thursday’s dip didn’t extend down Friday, but still must recover above 14.35-14.40 to resume the rally.

30-year Treasury Mar Contract (US, ETF: (TLT))
Retesting the prior high now allows the rally to peak, whether immediately or after extending to test 162-26. Interestingly, the strength accompanies stock market strength, without a “flight-to-safety” catalyst.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Friday’s early strength attacked the 34.80 bounce target that had been met Thursday. Its reaction down into negative territory stopped short of testing the 32.50 pullback limit, keeping alive potential for extending to 37.20.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Recovering Thursday from its dip had kept alive the basing pattern, yet again, by closing back above 2.14. Friday’s gap up to 2.30 helps to signal the bottom is done forming, but a second consecutive higher close Monday would confirm a new upleg is underway. Meanwhile, a test of “lower prior highs” at 2.19 would temper the excessive optimism.

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))
Thursday’s firm open initially exploited Wednesday’s constructive session, which had recovered the open’s gap up after filling the gap below back to Tuesday’s close. Closing above 1.0950 would confirm fresh highs are in-play.

Gold Feb Contract (GC, ETF: (GLD))
Initial strength Thursday was reversed down sharply to retest the 1114.00 pullback limit, which held to maintain the potential for extending higher to 1131.50.

Silver Mar Contract (SI, ETF: (SLV))
Spiking down Thursday morning held 14.20 support to prevent reversing the trend back down, but 14.40 must still be recovered to resume the rally.

30-year Treasury Mar Contract (US, ETF: (TLT))
Testing 160-20 resistance overnight didn’t extend higher intraday, but neither was it reversed down as potential remains alive for resuming or at least extending the rally to 162-28.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Dueling headlines between Russia and Opec members triggered early volatility Thursday, which eventually resolved up to test the 34.80  corrective bounce target by 2 cents. Its reaction down held the 32.50 pullback limit that keeps alive potential for extending to 37.20.

Natural Gas Mar Contract (NG, ETF: (UNG, UNL))
Thursday’s EIA report was not greeted from a position of strength. But its knee-jerk reaction down was recovered to attack positive territory, and closing above 2.14 keeps alive the basing pattern and its potential for launching a new upleg.

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))
Gapping up Wednesday to test the 1.0900 bounce limit didn’t take off the table a deeper dip to 1.0750. But recovering from an intraday dip does require sellers to be obviously in control Thursday morning to avoid launching a rally leg.

Gold Feb Contract (GC, ETF: (GLD))
Tuesday’s attack on 1122.00 wasn’t repeated Wednesday. And the breakout wasn’t confirmed by a second consecutive higher close. But the 1114.00 pullback limit wasn’t threatened, so higher highs remain likely.

Silver Mar Contract (SI, ETF: (SLV))
Not rejecting Tuesday’s breakout keeps alive the likelihood for extending higher, albeit without any higher requirement being in-play.

30-year Treasury Mar Contract (US, ETF: (TLT))
Tuesday’s dip was premature for launching a downleg, so Wednesday’s weakness was absorbed and a retest of 160-20/160-28 remains likely.

Crude Oil Mar Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Gapping down Wednesday held 30.45-30.95 as support before recovering into positive territory above Friday’s 32.40 prior highs. The next higher objective is 34.80.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
[Rolling forward to Mar contract]. Probing slightly higher overnight and at the open did not extend higher intraday. EIA is reporting Thursday but is not being greeted from a position of strength.