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 Wednesday might be the last opportunity for Natural Gas to rally out of its recent dip, and to avoid breaking lower from the Head & Shoulders pattern that has been forming.

Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Another momentary fresh high briefly pierced Tuesday’s high before settling back into the range for the balance of the session. Almost any early strength Wednesday would be credible for extending higher intraday.

Eurodollar Mar Contract (EC, ETF: (FXE))
Tuesday’s dip was just an “inside day” that shouldn’t further delay resolving into a new downleg. Any break under 1.3595 would be likely to trend down intraday.

Gold Feb Contract (GC, ETF: (GLD))
Not closing above 1240.00 Monday wasn’t bearish, not unless 1237.00 wasn’t maintained through a close. Tuesday’s lows did probe lower, and then slid under 1222.00. Closing under 1230.50 and 1232.50 in a single session now requires closing back above both simultaneously to resume the rally’s momentum.

Silver Mar Contract (SI, ETF: (SLV))
Tuesday’s dip ultimately held 19.70, which the recovery cannot afford to break. There is no reason to further delay resuming the rally, if a recovery is still unfolding.

30-year Treasury Mar Contract (US, ETF: (TLT))
Early weakness held 128-28 Tuesday instead of probing it before recovering to a fresh high testing 129-12. That shallow of a dip didn’t stretch the rubber band tightly enough for assuring that its snap back up would be very productive. Its bounce might extend, but not reliably.

Crude Oil Feb Contract (CL, ETF: (USO))
Firming Tuesday didn’t bounce very high, but at least its directional change avoided extending the recent decline any deeper where a more substantial downleg would have been triggered. Closing above 94.65 would signal momentum reversing up.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Gapping up Tuesday only filled the gap outstanding above at 4.43, and its resistance sent price back down into negative territory. The close was just above the 4.24 sell signal that would trigger the massive Head & Shoulders pattern targeting 3.87. Revisiting Tuesday’s opening print could prevent its reaction down from extending.

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