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 What the cliff giveth, FOMC taketh away… Gold’s surge to new relative highs was retraced entirely Thursday. The precious metal fell in-line with currencies like the Euro. Each is testing relevant support, so any delay in reversing up would suggest another downleg coming.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Thursday’s gap up to the rally’s 80.20 target later extended sharply higher to test 80.50, targeting 80.55-80.75.
Eurodollar Mar Contract (EC, ETF: (FXE)) Wednesday’s close under 1.3195 gapped down Thursday, and then later extended through its 1.3080 target. The drop can extend to 1.3035 or 1.2965 so long as 1.3145 is not recovered.
Gold Feb Contract (GC, ETF: (GLD)) Not extending up immediately Thursday made a correction likelier down to 1675.00. Thursday’s open gapped down to test it. The FOMC Minutes triggered another downleg back to “lower prior highs” at 1662.00. Just closing above 1663.00 keeps alive potential for retesting 1675.00, or even probing above it to 1690.00. But resuming the rally is premature, as is rejecting the prior rally leg.
Silver Mar Contract (SI, ETF: (SLV)) Thursday’s reaction to FOMC Minutes extended the morning’s drop under 31.00, but only to 30.40, still above “lower prior highs.” A recovery remains credible so long as 30.25 holds as support.
30-year Treasury Mar Contract (US, ETF: (TLT)) Extending down Thursday confirms Wednesday’s steep drop. It also creates potential for a corrective bounce up to 145-08 while lower lows at 143-30 are in-play. Closing above 146-00 would suggest a bigger bounce underway.
Crude Oil Feb Contract (CL, ETF: (USO)) The reaction down from Wednesday’s high did not extend lower Thursday as the market ranged narrowly sideways. A corrective dip to the gap below at 91.80 could be tested down to 91.25 would suggesting the rally had ended.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL)) Wednesday’s gap down to new lows was not rejected Thursday. Fresh lows were probed without extending down, but there is no active signal.
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