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 Is Gold still “jumping the shark”? Currencies extended sharply, with the Euro fulfilling the decline’s long-awaited minimum objective of probing year-old lows. It’s certainly interesting that Gold rallied only back to its prior session’s highs, while Silver ranged sideways.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Wednesday’s recovery extended sharply higher overnight to retest last week’s 81.25 bounce target. This leg’s minimum objective is to probe fresh highs above 81.41, probably to 81.80-82.20, so long as pullbacks no hold 80.85 support.
Eurodollar Mar Contract (EC, ETF: (FXE)) A steep overnight slide finally fulfilled the decline’s long-awaited minimum objective, to probe under last January’s 1.2901 low. The 12650 objective remains in-play so long as bounces now hold 1.2840-1.2900 as resistance.
Gold Feb Contract (GC, ETF: (GLD)) The drop from Wednesday’s 1826.80 pre-open high extended down to 1597.70, testing 1598.00 support. Its test launched a recovery to within $1 of 1597.70, just noise in the range. Closing back under 1610.50 would still signal a new downleg underway, confirmed by closing under 1598.00.
Silver Mar Contract (SI, ETF: (SLV)) The divergence from Gold persisted for a second consecutive day as Tuesday’s 29.73 high still have yet to be met. But 28.70 support still holds, so sellers have yet to reject the bounce.
30-year Treasury Mar Contract (US, ETF: (TLT)) Trending ahead of Friday’s Employment Situation report would be unusual. Even more unusual was Thursday’s wide and choppy range. Room for a bounce testing 143-00 was fulfilled before Thursday’s open. Despite reacting down to probe under Wednesday’s 142-03 low, 143-00 was revisited. And it was retraced again down to 142-05. A close beyond either end of the range Friday should extend in that direction, and all unfinished business is below.
Crude Oil Mar Contract (CL, ETF: (USO)) A third consecutive session of testing the 103.00 rally target again failed to close higher. It was rejected back under 102.00. There is no active signal, but a vulnerability to extending higher sharply.
Natural Gas Mar Contract (NG, ETF: (UNG)) Wednesday’s timid probe above 3.09 didn’t was the wrong character for triggering its buy signal. Extending higher after Thursday’s EIA report would have been bullish. But Thursday’s reaction fell back to 2.98. Meanwhile, Thursday’s open left outstanding a gap back to Wednesday’s 3.12 close. Closing above 3.09 would be sufficient to trigger momentum reversing up.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…