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 Dec Contract (EC, ETF: (FXE, UUP))
Hovering an extra day at 1.1400 resistance had created a position of strength to better enable absorbing a reaction down to 1.1330. Its test Friday as support would be bullish if a reaction closes back above 1.1370.

Gold Feb Contract (GC, ETF: (GLD))
[Rolling coverage forward to Feb which trades at a 6.70 premium to Dec]… Wednesday afternoon’s surge in reaction to the Fed Chair’s comments was never confirmed by a higher close, and now it has been retraced entirely. The 1226.30 sell signal is still being tested Friday afternoon, but momentum should reverse down sharply if confirmed Monday.

Silver Mar Contract (SI, ETF: (SLV))
[Rolling coverage forward to Mar which trades at a 13-cent premium to Dec]… Wednesday afternoon’s surge in reaction to the Fed Chair’s comments was retraced entirely overnight and extended to fresh lows Friday. Gaps are left outstanding above, but the pattern’s distributive features remain intact.

30-year Treasury Dec Contract (US, ETF: (TLT))
Thursday’s fresh high had retraced intraday to fill the gap back to Wednesday’s close, neutralizing its attraction below. Already trending back up overnight held Friday within Thursday’s intraday range, but did not touch Wednesday’s overnight high. This pessimism can be bullish from a contrarian perspective.

Crude Oil Jan Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
More aggressive selling was absorbed at Friday’s gap down to its lowest intraday levels — albeit still just above Wednesday’s overnight low. That bit of optimism aside, all other price action has been consistent to forming a bottom.

Natural Gas Jan Contract (NG, ETF: (UNG, UNL))
Friday’s ranging between 4.44-4.63 remains likely to break the range’s upper-end and resume the rally targeting a probe above 5.00.

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 Dec Contract (EC, ETF: (FXE, UUP))
Not rejecting but hovering Thursday at the 1.1400 resistance tested by Wednesday’s rally suggests that a low is forming, and that pullbacks will likely recover to fresh highs.

Gold Dec Contract (GC, ETF: (GLD))
Wednesday’s surge tried overnight to extend higher but spent Thursday hovering around the surge’s highs, keeping alive potential for dropping back under 1220.50 to resume the decline.

Silver Dec Contract (SI, ETF: (SLV))
Flat but choppy ranging Thursday didn’t confirm Wednesday’s surge as having gained traction, so almost any initial weakness Friday would be likely to extend down intraday.

30-year Treasury Dec Contract (US, ETF: (TLT))
Already more than one session beyond the 139-22 sell signal being rendered moot, rallying Wednesday night probed fresh highs. Which also reinstates the 139-22 sell signal if triggered — which Thursday’s reaction down from gapping up is threatening to attack.

Crude Oil Jan Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
An aggressive blip-down to fresh lows into Thursday’s open was recovered back up into the range above last Friday’s close to continue forming a bottom. Reacting back up to Wednesday’s highs is threatening to launch a rally leg by closing any higher.

Natural Gas Jan Contract (NG, ETF: (UNG, UNL))
Thursday’s EIA report was greeted from a position of strength that enabled its reaction down to hold a test of the 4.44 buy signal, recovering to test the 4.63 confirmation and resume the rally targeting fresh highs above 5.00.