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 Dec Contract (EC, ETF: (FXE, UUP))
Tuesday’s 1.1495 gap down under all prior lows requires an eventual retest after its post-open action rallied intraday. That didn’t prevent Wednesday morning from extending higher to fill the gap back up to Monday’s 1.1590 close. And it can’t prevent probing any higher Thursday morning, although that would be likely to reverse back down through the afternoon.
Gold Dec Contract (GC, ETF: (GLD))
Wednesday’s flat-to-higher ranging didn’t extend Monday’s collapse, and it was too shallow to reject it — for a second consecutive session. The break is all but confirmed, although Wednesday’s bounce shouldn’t extend much beyond Thursday’s open before failing.
Silver Dec Contract (SI, ETF: (SLV))
Probing slightly lower lows Wednesday morning down to 14.25 tested uptrending support and the 14.28 level whose break would confirm a new downleg underway. Its test was ongoing through the afternoon, but not rejected.
30-year Treasury Dec Contract (US, ETF: (TLT))
Tuesday’s bounce wasn’t going to extend or at least not gain traction, but gapping down Wednesday and spending the entire session in negative territory may be resuming the decline. Prior intraday lows at 136-26 were tested, with fresh lows lying another half-point lower.
Crude Oil Nov Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Bouncing back up to the 75.30 buy signal Tuesday without triggering it prevented greeting Wednesday’s EIA report from a position of strength. Its reaction trended back down under the 73.90 sell signal that had held two prior tests Friday and Monday, but broke lower Wednesday to 72.90. A second consecutive lower close would undermine any higher targets.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Tuesday’s failure to extend Monday night’s extension of the intraday surge required extending higher Wednesday without delay to avoid a much deeper corrective dip. Which Wednesday did — rallying overnight to within 1 cent of Monday night’s 3.37 high — but that was only half the battle. The intraday high got to only 3.34 before reversing back under the two prior sessions’ 3.29 highs to 3.25. Thursday’s EIA report is being greeted from a position of weakness. That doesn’t preclude an initially favorable knee-jerk reaction up, but the burden of proof is on buyers to extend the rally, or else to correct it.