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))
Gapping up and probing higher Wednesday filled the gap back up to Friday’s 1.1365 close. Holding its resistance provides an opportunity for the pattern to react down fill the gap back to Monday’s 1.1275 close or to retest its 1.1245 overnight lows to form a more solid bottom.

Gold Dec Contract (GC, ETF: (GLD))
Fresh lows attacking 1198.00 overnight and intraday never maintained a break under 1201.50, which would have targeted lower lows, before recovering back up to 1210.00 intraday and then attacking 1217.00 post-close.

Silver Dec Contract (SI, ETF: (SLV))
Tuesday’s slightly lower fresh lows attacking 13.85 recovered back into positive territory and above Tueday’s high for an outside day, threatening to reverse the trend up or at least to form a corrective bounce.

30-year Treasury Dec Contract (US, ETF: (TLT))
One more intraday dip to 138-04 the buy signal was soon retraced and reversed to sharply higher highs at 139-10 as stocks fell. A second consecutive higher close would confirm at least another higher close is required.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Flat-to-higher ranging up to 57.35 did not form a bottoming pattern and only held a test of the last relative high. A retest of Tuesday’s 54.75 low is likely.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Surging 86-cents / 20% overnight up to 4.96 was the largest one-day gains in 9 years. Its intaday reaction down to 4.36 retraced 61.8% of the distance back to “lower prior highs” before recovering almost all of the overnight highs. The behavior is exhaustive, and back under the 4.36 interim low would trigger a deeper correction.

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))
Monday had fulfilled the minimum objective of Thursday’s confirmed breakout, creating vulnerability to a bounce, which developed overnight but not until probing fresh lows at 1.1245. Gapping up within Monday’s range was reversed back into Monday’s range after temporarily probing above it, which doesn’t reverse the trend up.

Gold Dec Contract (GC, ETF: (GLD))
Post-close action Monday had tested the decline’s minimum 1201.50 target, whose break would next target 1172.50. Fresh lows Tuesday probed further under  the signal and then held its test as resistance.

Silver Dec Contract (SI, ETF: (SLV))
Tuesday’s fresh lows didn’t extend, certainly not at any aggressive pace, but the decline’s momentum remains intact.

30-year Treasury Dec Contract (US, ETF: (TLT))
Monday’s gap up was not extended overnight or Tuesday morning, which instead opened back down to the 138-04 buy signal that is awaiting a valid trigger. Recovering into the afternoon pierced positive territory sporadically, still likely to extend higher aggressively if extending higher at all.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
A post-close slide to fresh lows Monday foreclosed upon the 61.00 buy signal that could have triggered after Monday’s intraday bounce. The slide became a plunge — the deepest in 3 years — down to 55.70 intraday, and continued sliding post-close.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Trending up to fresh highs overnight ignored Monday’s “ineffectual optimism” and its vulnerability to launching at least a corrective dip. The pattern of two breakouts interrupted by a non-confirmation often produces another non-confirmation Wednesday, which would be vulnerable to reversing down into the afternoon.