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))
Fresh highs Wednesday probed above the 1.1446 prior high that had preceded the 1.1370 gap which was filled last week. Unless rejected by Thursday’s close, the break higher is now targeting 1.1595.

Gold Dec Contract (GC, ETF: (GLD))
Probing the outstanding 1169.00 target overnight had reacted down to 1160.00, but its retest intraday extended up to 1180.00 intraday. And that extended up to 1187.00 in reaction to the afternoon’s Beige Book release. The next higher target at 1195.50 remains in-play so long long as pullbacks now hold 1175.50 as support.

Silver Dec Contract (SI, ETF: (SLV))
Last week’s 16.10 high was tested and retested in the shallowest of ways up to 16.17 Wednesday. Trending any higher should begin by almost literally exploding higher. Any slighter strength would be unlikely to actually trend higher.

30-year Treasury Dec Contract (US, ETF: (TLT))
Filling the gap above back to 158-23 extended higher intraday to test 159-13, with room up to 159-22 before suggesting more than a corrective bounce was underway. Back under 157-30 would signal momentum reversing down.

Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Wednesday’s gap down didn’t extend lower intraday, but the balance of the session ranged in negative territory. This is “ineffectual pessimism” that requires immediate recovery to avoid trending down sharply Thursday.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Narrow ranging once again failed to exploit that the decline had stopped trending. Thursday’s EIA report isn’t being greeted from a position of weakness, but the potential for an initially negative knee-jerk reaction down can’t be discounted.