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 Thursday’s action began Wednesday night. Not that any breakouts or trending got underway. In fact, overnight breakouts and trending were rejected forcibly Thursday. Energies, however — like Crude Oil and Natural Gas — firmed to levels vulnerable to surging if given just a gentle push Friday.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) A break above the 80.10 buy signal did trigger follow-through, but none of it survived past overnight. The regular session only dipped to 79.80. Now closing above 80.00 would target 80.55 and 81.00.
Eurodollar Dec Contract (EC, ETF: (FXE)) Back under 1.2880 did trigger follow-through to test Tuesday’s intraday 1.2865 low down to 1.2833. But that was recovered entirely overnight to gap up Thursday above Wednesday’s 1.2922 high. The 1.2950-1.2975 corrective bounce target was tested, and it held as resistance. Closing above it Friday would target 1.3100, and avoid resuming the decline.
Gold Dec Contract (GC, ETF: (GLD)) Wednesday’s narrow ranging that held 1760.00 support tried to rally Thursday, but only held its test of 1770.00 resistance. A higher close could gain traction to reinstate the 1814.00 target, but this action seems more vulnerable to resuming the corrective drop targeting 1717.00-1727.00.
Silver Dec Contract (SI, ETF: (SLV)) Firmer prices Thursday still only ranged narrowly around the prior three sessions’ ~34.15 highs, not at all attacking 34.50 or 35.00 whose recoveries would put into play 36.75. A deeper pullback to 33.00 remains likely.
30-year Treasury Dec Contract (US, ETF: (TLT)) Slightly higher highs overnight probed above 149-00 resistance before reversing down sharply Thursday to test 148-00 support. Its complete recovery was interrupted by an initially negative knee-jerk reaction to the 30-year auction. But it resolved up to test 149-08. Now 149-16/149-24 is likely to be tested before any sell-off could gain traction. Closing above this resistance would trigger a much bigger rally, which still seems unlikely considering the rally’s origins.
Crude Oil Nov Contract (CL, ETF: (USO)) Wednesday’s reaction down to its 91.20 pullback limit was recovered for another test of 93.00 resistance. It held again, but any early aggressive trending above it would be credible for launching an aggressive rally to 100.00.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL)) Favorable reaction to Thursday’s EIA report extended through the 3.51 prior high, testing the original 3.58 target. Now 3.75 is in-play so long as pullbacks hold 3.50 as support.
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