Daily Spot
A daily summary of high-profile members of several complexes…[pay] View a more detailed discussion of each at the end of today’s Market Wrap.
Today’s Highlight Currencies hit their precise targets as the product of steep overnight moves. Their reactions retraced entirely back to the prior session’s close. But no further. Volatility is alive and well.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) After Wednesday’s surge to the 80.85 target, Thursday’s open immediately fulfilled the next higher 81.25 target, then reversed back down to 80.85. Session lows stopped short of probing Wednesday’s last relative lows, preventing sellers from gaining traction and keeping alive potential to retest 81.25 intraday.
Eurodollar Mar Contract (EC, ETF: (FXE)) Sharply lower lows overnight bottomed upon testing the 1.2870 target. Its reaction up peaked upon testing the 1.2975 bounce limit. Even if that was the low, the immediate reaction up has left outstanding a gap back to the 1.2895 open that should be retested. Back under 1.2925 would signal the low’s retest underway.
Gold Feb Contract (GC, ETF: (GLD)) The plunge extended overnight to attack its 1520.00 target within $4. Bounces had potential up to 1547.50, which was being tested Thursday afternoon. Dips have room down to 1536.00 before gaining traction to become a more substantial decline. But no buy signal could begin forming from under 1555.00. And meanwhile, there is potential for one more downleg targeting 1595.50-1506.00.
Silver Mar Contract (SI, ETF: (SLV)) The drop’s 26.30 target was exceeded briefly at Wednesday night’s low. Its recovery back to and through 27.40 filled the gap back to Wednesday’s close. Retesting the regular session’s 26.59 opening gap would help to form a bottom.
30-year Treasury Mar Contract (US, ETF: (TLT)) Wednesday’s rally to 144-18 was retraced Thursday down to only 143-27. That was short of 143-18 and 143-12 whose breaks would signal a new downleg underway. Wednesday’s reaction up probed a fresh high, but 144-18 held as resistance to keep alive the topping potential along with the 143-18 and 143-12 sell signals.
Crude Oil Mar Contract (CL, ETF: (USO)) Thursday’s dip used the room for correcting down to 99.00-99.40 — and then some — recovering to close back above both. There is no reason to further delay a rally leg up to 103.00, unless there is not going to be a rally leg up to 103.00.
Natural Gas Mar Contract (NG, ETF: (UNG)) The potential for sealing a bottom failed to trigger its 3.21 signal. The decline extended down sharply to a fresh low. Another pattern formed that also has potential to seal a bottom, but it requires surging back up through 3.09 Friday. Otherwise, the trend trend remains down.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…