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Daily Spot… – If, Then… Market Timing

Daily Spot…

By Rod David | November 7, 2016 - 2:22 pm

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))
Ranging around the 1.1100 target had never broken higher, but an Ascending Triangle had formed through Friday, thanks to its inside day. Nevertheless, gapping down under the range’s low Monday and extending down intraday signals a reversal targeting 1.1000 and potentially also 1.0965. It’s likely only a temporary corrective leg since it had originated from a failed Ascending Triangle.

Gold Dec Contract (GC, ETF: (GLD))
Gapping down Monday extended to actually test the 1284.00 pullback limit that was narrowly avoided at Thursday’s open. Regardless, Friday was the opportunity to reject Thursday’s intraday recovery, so Monday’s dip should prove to be only a retest of the pullback low. Otherwise, confirming the break would target at leas 1266.00 and probably 1252.50.

Silver Dec Contract (SI, ETF: (SLV))
Gapping back down Sunday night extended lower Monday morning to attack or test the 18.05 pullback limit which had held Thursday’s gap down. It’s probably too late to confirm the original break since it wasn’t rejected immediately Friday.

30-year Treasury Dec Contract (US, ETF: (TLT))
Gapping down Monday back under the 163-02 bounce limit has no more traction than the probes above it — until closing under 162-16. Regardless, extending down would be in-line with expectations to better form a bottom by probing under it again, probably to 160-10.

Crude Oil Dec Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Already having bounced early Friday from the decline’s 43.75 target, opening firmer or gapping up Monday was free to extend higher. So, the session’s restrained optimism does suggest that actually rallying could be very productive, regardless of its vulnerability to the decline eventually extending.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Gapping up slightly Monday was not the rejection of Wednesday’s gap down that would launch a credible recovery. Closing above 2.88 and 2.91 remain the minimum requirement to being signaling the decline has ended and that momentum may be reversing up.

Posted in Bigger Picture, Daily Spot, members-only