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 Crude Oil quickly met its next lower target after having spent so long before breaking under its last consolidation range. Such a steep near-term adjustment suggests a major paradigm shift in economic perceptions.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Ranging narrowly Wednesday didn’t confirm Tuesday’s drop, so no third lower close is required. That doesn’t preclude the drop from extending anyway, and there is no active reversal signal. And not reversing down quickly would make Wednesday’s hesitation irrelevant.
Eurodollar Dec Contract (EC, ETF: (FXE))
Wednesday’s narrow sideways ranging didn’t confirm Tuesday’s rally, so no third higher close is required. That doesn’t preclude the rally from extending anyway, and there is no active reversal signal. And not reversing down quickly would make Wednesday’s hesitation irrelevant.
Gold Dec Contract (GC, ETF: (GLD))
Tuesday’s extra push to 1341.00 without closing above it (still overlapping it at the close) proved to be its undoing, at least for this effort. Wednesday’s open gapped down to test 1329.50 support. But 1329.50 missed the opportunity to break lower, similar to the 1341.00 test. Now closing under 1321.50 is needed to signal momentum reversing back down.
Silver Dec Contract (SI, ETF: (SLV))
Gapping down Wednesday only attacked the month’s “lower prior highs” at 22.50, despite coming close early and then hovering through the day. That optimism is potentially bearish, unless rejected almost immediately Thursday by new highs for the rally.
30-year Treasury Dec Contract (US, ETF: (TLT))
The rally extended Wednesday to a new high at 135-23, targeting 136-28 so long as pullbacks now hold 135-12. But momentum won’t reverse down without closing under 134-24.
Crude Oil Dec Contract (CL, ETF: (USO))
The next lower target at 96.35 was tested at Wednesday morning’s low. The balance of the session firmed, holding the 97.35 bounce limit that keeps alive potential for extending to the next lower target at 92.85-93.15.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Wednesday’s gap up helped to refuel sellers for extending the decline to fulfill its minimum third lower close, which was put into play by Tuesday’s confirmation. There is potential for bottoming at 3.53-3.55, but closing under would signal new lows in-play.
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