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 Sep Contract (EC, ETF: (FXE, UUP))
The break under 1.1725 had ended Wednesday testing the 1.1700 sell signal. It broke sharply lower Thursday to fulfill its objective, filling the two-week old gap down at 1.1636. That’s attacking the lower-end of two-month long Descending Triangle, so a recovery can’t afford to be delayed while the pattern is vulnerable to launching a significant downleg.
Gold Dec Contract (GC, ETF: (GLD))
There was already no bullish reason for Wednesday to have retested 1225.00, which Tuesday’s spike down had neutralized already. But Thursday gapped down through 1225.00 and extended lower intraday to test prior lows and 1220.00. This is similar to a confirmed breakout, and at least an eventual third lower close is likely.
Silver Sep Contract (SI, ETF: (SLV))
Returning Wednesday to the 15.40 sell signal wasn’t quick to break under it Thursday, barely probing under it through the morning. A delayed reaction would be likely Friday if the break is valid.
30-year Treasury Sep Contract (US, ETF: (TLT))
Thursday’s gap up to Wednesday’s 142-16 high soon reacted down almost a half-point, which was more than enough to fill the gap back down to Wednesday’s close — a close that otherwise would inhibit a recovery. A recovery isn’t signaled, not without at least closing Thursday back above 142-12/142-16 to greet Friday’s Employment Situation report from a position of strength. But there would be no “unfinished business below.”
Crude Oil Sep Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Thursday’s price action essentially confirms the recent dip was only a temporary correction. An overnight dip attacking 66.90 was already reversing up to greet Thursday open at 67.25. The reversal soon extended sharply test 69.35. Just closing above 68.35 already signals momentum is reversing up, presumably targeting 71.25.
Natural Gas Sep Contract (NG, ETF: (UNG, UNL))
Still testing 2.76 at Wednesday’s close had prevented greeting Thursday EIA report from a position of weakness. It wasn’t necessarily a position of strength, but the knee-jerk reaction surged to attack Tuesday’s 2.83 high. Closing higher Friday would suggest the pullback avoided reversing the trend down.