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 and Silver have consolidated last week’s two wild intraday swings, and started firming back to key resistance. Early probing of fresh highs Tuesday or Wednesday would be likely to extend sharply intraday.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Monday’s probe of a fresh low didn’t confirm any earlier breakout, so a second consecutive lower close Monday would confirm a new downleg underway. Alternatively, rallying to close higher Tuesday — without confirming Monday’s breakout attempt, and without leaving a gap outstanding — would form a new bottom.
Eurodollar Dec Contract (EC, ETF: (FXE))
Friday’s confirmation of Thursday’s breakout extended higher Monday to fresh highs, fulfilling the setup’s minimum for at least one more higher close. There is potential for testing 1.3775 or 1.3833 before ending this rally leg, but closing negative before then would signal momentum was already reversing down.
Gold Feb Contract (GC, ETF: (GLD))
Closing Friday while in the process of testing the 1230.50 pullback limit did not extend down immediately Monday, confirming that the bottoming attempt remains intact. Monday’s firming was not relevant, but further improvement after the close did start positioning for an early test of the 1240.00-1245.50 resistance.
Silver Mar Contract (SI, ETF: (SLV))
Monday’s ranging up to 19.80 consolidated just under last Wednesday’s gap, its continued coiling keeping optimism restrained, so that its eventual break higher would be that much more aggressive. Trending up after Monday’s close suggests a break higher may now be underway.
30-year Treasury Mar Contract (US, ETF: (TLT))
Friday’s test of 129-16 resistance was retested by Monday’s gap up, which only probed higher temporarily to 129-22 but didn’t extend, as the pattern still lacks a buy signal setup.
Crude Oil Jan Contract (CL, ETF: (USO))
Narrow sideways ranging extended the consolidation just under the rally’s 98.35 target. The pattern is likely to resolve either in a correction back down to the 94.00 area, or else in a surge launching a new rally leg.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL))
Despite Friday’s dip that didn’t confirm Thursday’s breakout, Monday’s gap up extended to fresh highs that fulfilled the rally’s 4.25 target. Having fulfilled buying pressure without gaining traction, any reversal down is likely to be very productive. But a reversal down requires closing under 4.13.
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