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))
Wednesday’s opening bobble at least didn’t extend the test of 1.1010 resistance, whose test should not further delay launching a downleg if the 1.0750-1.0785 pullback target remains in-play.

Gold Feb Contract (GC, ETF: (GLD))
Sliding sharply at Wednesday’s open probed into the 1057.00-1061.50 support whose break would target 1039.00-1041.00. Even that extra leg to fresh lows could still be part of a bigger bottoming pattern. Closing above 1074.00 and not under 1057.00 would be more assured of a bottom.

Silver Mar Contract (SI, ETF: (SLV))
Having failed Tuesday to reject Monday’s plunge, probing fresh lows Wednesday at 13.80. It must be rejected without delay to avoid probing new lows.

30-year Treasury Mar Contract (US, ETF: (TLT))
A second consecutive lower close was avoided Wednesday despite probing fresh lows in the morning. So, Tuesday’s breakout was not confirmed, which would have required at least an eventual third lower close.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Already having reacted poorly to a bearish Saudi production announcement, the reaction to Wednesday’s bearish EIA report was expected only to be emotional, and temporary. Testing 36.50, there is still room down to 36.00, but not really any reason to avoid rallying.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Gapping down Wednesday created an Island ahead of Thursday’s EIA report. But so long as 2.14-2.23 were to hold as support, then the news is being greeted from a position of strength. Islands are made to be retested, whether or not on the way to higher highs.

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 bounce back up to last Tuesday’s highs was rejected in the same way, by gapping down. The pullback targeting 1.0750-1.0785 remains intact.

Gold Feb Contract (GC, ETF: (GLD))
Rallying overnight to 1074.00 resistance was in-line with having stopped the decline’s momentum, but must still close above 1077.70 to signal momentum reversing up.

Silver Mar Contract (SI, ETF: (SLV))
Tuesday’s bounce helps to confirm that Monday’s dip to the base’s 61.8% retracement had held,  but only closing above 14.10 would signal momentum reversing up.

30-year Treasury Mar Contract (US, ETF: (TLT))
Having held Monday’s corrective bounce limit at 155-30, Tuesday’s reversal back under 154-30 was credible for launching a new downleg. Its break already extended to fresh lows at 153-08.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Monday’s pullback to the 36.75 buy signal had held, as confirmed by Tuesday’s gap up back above it attacking 38.00. Wednesday and Thursday’s breakout and consecutive confirmation still require at least an eventual third higher close.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Extending higher overnight to gap up Tuesday exceeded the 1.29 target by a dime, suggesting that the next higher objective at 1.50 is in-play so long as pullbacks now hold 2.28 as support.