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 One day after the world changed forever, i.e. the possibility of Fed tapering was announced, Gold behaved accordingly and plunged. Crude Oil rallied on the endorsement of economic recovery.

Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Wednesday’s washout gave way to a fresh relative high Thursday. A second consecutive higher close Friday would confirm a bottom is in, and that momentum has reversed up.

Eurodollar Mar Contract (EC, ETF: (FXE))
Having held a test of 1.3833 resistance after Wednesday’s FOMC news, Thursday’s gap down to fresh relative lows confirms the level’s relevance. But a second consecutive lower close is still needed to confirm momentum has reversed down. That might be difficult with the gap back to Wednesday’s close outstanding.

Gold Feb Contract (GC, ETF: (GLD))
Despite not immediately extending down or recovering from the week’s earlier closes under 1232.50, and despite testing the 1237.00 buy signal both before and after Wednesday’s FOMC news, price eventually extended down to fresh lows. Thursday’s lows under 1192.00 allow room for a corrective bounce either to 1205.00 or 1217.00 before resuming the decline. Regardless of whether Friday produces a second lower confirming close, some eventual intraday probe under Thursday’s lows is all but required.

Silver Mar Contract (SI, ETF: (SLV))
Thursday’s gap down under almost all prior lows filled a gap outstanding to 19.10. Despite gaps outstanding above, the pattern is likely also to print new lows under 19.00 before having a chance to recover.

30-year Treasury Mar Contract (US, ETF: (TLT))
Testing of the 129-16 sell signal produced fresh relative lows under 129-00. Closing lower Friday would confirm the retest of prior lows is underway, targeting 127-28.

Crude Oil Jan Contract (CL, ETF: (USO))
Multiple tests of the 97.85 bounce limit already had lingered longer than optimal for a deeper pullback to 94.00 to remain likely. Thursday’s fresh relative highs probed the rally’s original 98.35 target to test 99.00, signaling the rally was more likely resuming, next targeting 101.50.

Natural Gas Jan Contract (NG, ETF: (UNG, UNL))
The three-day consolidation resisted by 4.30 reacted up sharply after Thursday’s EIA report, testing 4.45. Testing the 4.48-4.51 target area without closing above it would start to suggest a top was forming.

[/pay]

Share your questions and comments on this post in the blog, or in the chartroom…