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 Gold’s tumble Tuesday fulfilled expectations from the Euro having outperformed on Monday. It also highlighted Silver’s outperformance that I have been describing here. And that suggests the tumble is not going to be retraced quickly.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Tuesday’s gap down followed Monday’s test of the decline’s 79.75 target. Testing 79.60support through the day instead of trending down does keep alive the decline, but also requires the decline to extend without delay to avoid bottoming .
Eurodollar Dec Contract (EC, ETF: (FXE)) Tuesday’s gap up followed Monday’s test of the rally’s 1.3050 target. Testing 1.3105 resistance through the day instead of trending up does keep alive the rally, but also requires the rally to extend without delay to avoid topping.
Gold Feb Contract (GC, ETF: (GLD)) Firming Monday while the Euro surged had suggested that Gold would tumble Tuesday. The $19 gap down to 1701.00 was the lowest level in four weeks, and extended down to 1692.50. The drop is targeting 1682.50-1683.00 so long as 1710.50 is not recovered.
Silver Mar Contract (SI, ETF: (SLV)) Monday’s bounce had failed to recover the 33.90 sell signal that had triggered Friday, so Tuesday’s fresh lows were appropriate. Interestingly, the outperformance vs. Gold persisted as Silver’s gap down held a test of last week’s 32.90 low, which itself had held a test of the prior week’s low — Gold, meanwhile, broke to its lowest levels in four weeks. Closing back above 33.20 would suggest the drop had ended, but it remains vulnerable to extending down otherwise.
30-year Treasury Mar Contract (US, ETF: (TLT)) Monday’s recovery from the drop’s 149-04 target extended Tuesday to fill the gap back up to Friday’s 150-01 close. Despite probing up to 150-10, 150-01 was being tested at Tuesday’s close. Back under 149-24 would rob the bounce of its momentum, but 149-18 is still the sell signal.
Crude Oil Jan Contract (CL, ETF: (USO)) Similar to Monday’s gap up that immediately trended down throughout the day, Tuesday’s gap up trended back up. Both finished around last week’s 88.65 prior high that was likely to hold for several days. Now those several days have ended. The next trending attempt will get every benefit of the doubt for extending.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL)) Tuesday’s gap down under Friday’s prior low did not extend down, and only ranged around Friday’s low. No lower low is required, so a recovery must be underway Wednesday if the drop is to avoid extending at what could become an accelerated pace.
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