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 Wow, Gold. Its $37 overnight surge would never have been predicted. But it does provide an excellent “teaching moment” of what can happen when trending attempts continue holding tests of a relevant level, instead of breaking it.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Wednesday night’s plunge finally fulfilled the 80.05-80.10 pullback objective, and then some, probing fresh lows at 79.70-79.75. Back above 80.05-80.10 would signal a durable bottom is forming, initially attracted back up to this week’s highs. But a bottom must begin forming without delay to avoid extending down into a new downleg.
Eurodollar Dec Contract (EC, ETF: (FXE))
Wednesday night’s surge finally fulfilled the 1.3650 retest of recent highs up to 1.3575. Holding its test would allow a durable top to form, attracted back down to this week’s lows. But a top must begin forming without delay to avoid extending up into a new upleg.
Gold Dec Contract (GC, ETF: (GLD))
Wednesday’s recovery back above 1277.50 from testing 1269.00 had marginalized sellers until a bigger bounce developed. Wednesday night’s $37 surge exploited that hesitation much more than could have been anticipated. Extending higher Thursday morning also filled the gap back to recent highs and tested 1321.50 resistance.
Silver Dec Contract (SI, ETF: (SLV))
Gapping up to test 22.20 Thursday was retraced to 21.70, and the balance of the session firmed back into 21-88-21.95 resistance. The recovery was premature for not yet retesting the week’s low, and for the prior two sessions having filled gaps above and holding their resistance. So, a close above 21-88-21.95 is needed before considering Thursday’s rally to be bullish.
30-year Treasury Dec Contract (US, ETF: (TLT))
Wednesday’s recovery from probing fresh lows extended sharply higher Wednesday night to probe fresh highs. The pattern’s long outstanding minimum objective for at least one more new high close has been fulfilled, but the extended interim consolidation give higher highs more room.
Crude Oil Nov Contract (CL, ETF: (USO))
Although delayed by an extra bounce, 101.00 support was probed Thursday by gapping down from Wednesday’s test of the 102.35 bounce limit. Closing back above 101.00 at this stage would be bullish, but meanwhile the 99.10 target is in-play.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Wednesday’s reaction down from fresh highs produced a gap down Thursday. The session only ranged narrowly sideways, giving it potential to form an Island Reversal by gapping back up and extending higher Friday. Regardless, a close above 3.83 is still required to signal the rally is extending.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…