Daily Spot…
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))
Friday’s break higher was weak confirmation to Thursday’s weak breakout attempt. But extending higher would have been credible. Or simply dipping to test recent “lower prior highs.” All of which is now much higher after Tuesday morning’s plunge back to recent lows. There was no bullish reason to fill the gap back down to 1.0435 that had been filled already. The gap fill held, so rallying sharply is the only bullish scenario now. Delaying a recovery is not strength.
Gold Feb Contract (GC, ETF: (GLD))
Tuesday morning’s surge attacked the 1167.00 target already to within $1. There is no requirement to extend any higher, and back under 1154.50 would signal momentum already reversing down.
Silver Mar Contract (SI, ETF: (SLV))
Bouncing sharply at Tuesday’s open helped to leverage Friday’s late bounce. The reaction down from testing 16.20 has avoided gaining traction. Closing above 16.20 signals a new rally leg underway, which already extended to a fresh high Tuesday.
30-year Treasury Mar Contract (US, ETF: (TLT))
Gapping down sharply to 149-04 was recovered to fill the gap back up to Friday’s test of 150-24, still targeting 151-12 if sellers are gaining traction for their efforts.
Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Rallying sharply overnight neutralized all “unfinished business above,” stopping 6 cents short of the three-week old 56.24 Sunday night high. Not immediately, but soon, price tumbled sharply to 53.18 where the price had based previously. There’s no bullish reason to revisit it after already probing higher, but back above 54.20 would trigger a retest of Tuesday’s highs.
Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
The reaction down from probing above 3.75 had retraced Thursday, and broken lower Friday. Its minimum 3.62.objective was met overnight, and then broken on the way to recent pullback lows around 3.30. That’s also a prior low, and any lower would target 3.18.