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 plunge Tuesday confirms its recent rally was only a temporary correction. That doesn’t mean the prior low’s retest will be immediate. Meanwhile, Natty Gas saw Monday’s gap down go nowhere, and bounced above Friday’s high.

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Monday’ night’s drop to fresh lows under 80.05-80.10 was retraced back above prior lows before Tuesday’s open. That suggests a low is forming, although not necessarily that momentum is yet reversing up.

Eurodollar Dec Contract (EC, ETF: (FXE))
Overnight testing of the 1.3580 objective was reversed back into the range before Tuesday’s open. Having neutralized the outstanding objective above without closing above it, topping is likely.

Gold Dec Contract (GC, ETF: (GLD))
Failing to recover 1335.00-1341.00 before falling to 1321.00 made the drop likelier to extend down, but there was no expectation for it being so dramatic that Tuesday would fall $45 and test 1282.50. No immediate recovery is likely, and bounces holding 1306.00 and 1321.00 are likely to resolve down.

Silver Dec Contract (SI, ETF: (SLV))
Repeatedly testing 21.88-21.95 resistance made at least an obligatory fresh high likely, but perhaps it was sympathy with Gold’s plunge Tuesday that took Silver sharply lower to fresh lows attacking 20.60 support. No buy signal can be considered here.

30-year Treasury Dec Contract (US, ETF: (TLT))
Rallying stocks Tuesday kept the long bond out of the spotlight and ranging slightly lower to test the 132-22 pullback limit, with still at least one more fresh high close all but required.

Crude Oil Nov Contract (CL, ETF: (USO))
Bouncing back to 102.30 nevertheless returned back to Monday’s 101.05 low, still targeting 99.10 so long as 102.95 isn’t recovered.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Monday’s detour proved temporary as Tuesday’s open gapped up and extended higher to test 3.65. The pattern now targets 3.71-3.75 so long as 3.59 holds as support.

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