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 Wednesday’s FOMC statement — both anticipation for it, and reaction to it — continued enhancing the volatility among several key markets. It took currencies back to recent extremes, and extended Gold’s corrective bounce.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Wednesday’s open immediately broke under the 80.10 pullback limit that Tuesday’s gap down had already tested. The drop extended down to 79.70. Rejecting almost any lower intraday low Thursday to close positive would seal a bottom.
Eurodollar Dec Contract (EC, ETF: (FXE)) Wednesday’s open immediately broke above the 1.3000 bounce limit that Tuesday’s gap up had already tested. The recovery extended up to 1.3100. Rejecting almost any higher intraday high Thursday to close negative would seal a top.
Gold Feb Contract (GC, ETF: (GLD)) Tuesday’s premature reaction down to 1706.00 from only attacking the bounce’s 1720.00-1725.00 objective was recovered Wednesday to actually touch 1725.00. Closing back under 1720.00 would signal the corrective bounce had ended, and under 1713.00 would signal momentum had reversed down.
Silver Mar Contract (SI, ETF: (SLV)) Wednesday’s gap up to 33.25 eventually extended to fresh highs attacking the 34.00 target, which remains in-play so long as pullbacks now hold 33.50 as support.
30-year Treasury Mar Contract (US, ETF: (TLT)) Wednesday morning’s gap down had been recovered back up to 149-00 before plunging in reaction to the afternoon’s FOMC statement, through the 148-16 minimum objective to 147-30. Bounces should now hold test of 148-20 to maintain the decline’s momentum, next targeting 147-00.
Crude Oil Jan Contract (CL, ETF: (USO)) Two consecutive days of barely piercing the 85.85 sell signal were rejected Wednesday by gapping up above 86.00 and extending higher to test 87.70. That fills the gap back to last week’s “higher prior lows,” so closing Thursday back under 86.50 would signal the bounce was only a temporary correction before resuming the decline targeting 81.85-82.50.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL)) The testing of Monday’s 3.40 low extended Wednesday to slightly lower lows. Back above 3.48 would target 3.58, but the trend otherwise remains down.
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