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Daily Spot – If, Then… Market Timing

Daily Spot

By Rod David | October 23, 2014 - 2:43 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))
Narrow ranging around 1.2650 Thursday didn”t reject the recent break, which ultimately should prove to be temporary. But it”s still likely to test 1.2560-1.2585, so long as 1.2700 isn”t recovered first.

Gold Dec Contract (GC, ETF: (GLD))
Despite holding its 1241.60 pullback limit Wednesday, the decline extended overnight to gap down Thursday and test 1231.00 support. A second consecutive lower close would confirm the rally had ended, despite the 1259.00 bounce target that remains outstanding.

Silver Dec Contract (SI, ETF: (SLV))
Wednesday”s gap down back under 17.25-17.40. inhibited it from falling further with Gold Thursday. But the potential for fresh lows remains likelier than a new rally leg.

30-year Treasury Dec Contract (US, ETF: (TLT))
Trending down since Tuesday”s close — which ended the two day resting period that absorbed last week”s shock-to-the system — tested 141-08 support Thursday. That was the first close under prior lows, so a second consecutive lower close Friday could extend to 140-08. Otherwise, back above 141-24 would target 142-12, and possibly a bigger recovery leg.

Crude Oil Dec Contract (CL, ETF: (USO))
Ongoing chipping away at 81.80 support had broken lower Wednesday to test 80.00, but not deeply enough to launch a new downleg. Overnight news of tighter supplies triggered a surge that tested 81.80 resistance. Already having failed to hold 81.80 as support, failing to recover it on favorable news suggests that a more substantial downleg may be forming.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Greeting Thursday”s EIA report from a bearish posture didn”t prevent gapping down even further ahead of the news to 3.61. The gap down apparently discounted enough bearishness to allow a favorable reaction up to 3.68, but that was retraced entirely back down to session lows.

Posted in Daily Spot