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 FOMC taper announcement triggered substantial volatility as opinion’s flipped back-and-forth over its meaning, and prices flipped back-and-forth over relevant levels.

Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Wednesday morning’s sideways ranging reacted sharply to the FOMC news. Ultimately, little had changed, as the sideways ranging continues.

Eurodollar Mar Contract (EC, ETF: (FXE))
Wednesday’s FOMC news triggered a sharp break below the recent range that was recovered to probe the recent range’s upper-end. A fresh high testing 1.3833 remains likely.

Gold Feb Contract (GC, ETF: (GLD))
Fresh lows down to 1227.00 Wednesday were recovered by a spike up to 1237.00 before the afternoon’s FOMC news, which was greeted from above 1232.50 support. A reaction up to 1244.00 still fell back down to probe under 1232.50, still needing to close above at least 1237.00 to being signaling momentum reversing up.

Silver Mar Contract (SI, ETF: (SLV))
A bounce retested Tuesday’s 20.12 high to within a penny Wednesday morning, peaking pessimistically short, which can be bullish from a contrarian perspective. The FOMC news reaction was very deep, but fully recovered by a probe above the morning’s high to suggest the rally is underway.

30-year Treasury Mar Contract (US, ETF: (TLT))
Wednesday morning’s gap back under the ongoing 129-16 sell signal didn’t extend down to fresh lows, and probed back up above the signal just before the afternoon’s FOMC news. Its reaction down to 128-13 was recovered to test 129-16 again.

Crude Oil Jan Contract (CL, ETF: (USO))
Another test of the 97.85 bounce limit in reaction to Wednesday’s EIA report. There already was no bearish reason to further delay the long-awaited pullback to the 94.00 area. Closing above 98.35 would signal the pullback is being avoided and a new upleg is underway.

Natural Gas Jan Contract (NG, ETF: (UNG, UNL))
Tuesday’s retest of Monday’s highs up to 4.32 didn’t extend higher Wednesday ahead of the FOMC news or Thursday’s EIA report. But neither was it rejected, as the session ranged narrowly just under 4.30. A fresh high close would be credible for resuming the rally.

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