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 The long bond ranged narrowly through its monthly auction. Meanwhile, a sell signal is in-play. So, any strength while those two factors are pressuring it, might be reason to sell.

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Thursday’s surge to test 80.20 resistance would leave no unfinished business below if it were extended Friday to close above 80.35. Otherwise, the recent 79.75 low’s retest is likely without extending higher Friday.

Eurodollar Dec Contract (EC, ETF: (FXE))
Testing 1.3775 support Thursday threatened to reverse the trend down. That will be likely on a second consecutive lower close Friday in this pattern. There is otherwise potential for an oversold bounce to retest recent highs, and to actually test 1.8333 resistance.

Gold Feb Contract (GC, ETF: (GLD))
Wednesday’s failure to confirm Tuesday’s surge was punished harshly overnight with a drop that gapped down Thursday to test 1232.00. That is a 61.8% retracement of the rally from last week’s low. Room for noise around it down to 1224.00 was tested, too. Closing under 1219.00 would signal that a new downleg was underway. Otherwise, closing back above 1240.00-1245.50 would trigger another rally leg.

Silver Mar Contract (SI, ETF: (SLV))
Thursday’s gap down back under prior highs formed an Island out of the two prior sessions. Gaps were made to be retested, albeit not necessarily immediately. But so long as a lower close Friday doesn’t confirm Thursday’s drop, then a recovery would be likely.

30-year Treasury Mar Contract (US, ETF: (TLT))
Gapping down slightly and ranging sideways through the day and through the afternoon’s auction did not extend the 129-16 signal targeting a retest of last week’s lows.

Crude Oil Jan Contract (CL, ETF: (USO))
Ranging narrowly sideways doesn’t suggest a new upleg is forming, so much as a correction to the current upleg remains possible.

Natural Gas Jan Contract (NG, ETF: (UNG, UNL))
Fresh highs overnight were probed intraday Thursday to 4.42. Dipping to unchanged at 4.31 was recovered to attack the morning’s highs, and to maintain the rally’s momentum. .

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