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 Natural Gas closed too low for anything but an immediate and substantial surge to avoid trending down from the current Head & Shoulders pattern. That surge could be triggered by Thursday morning’s EIA report. Or, else.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Wednesday’s gap up was retraced barely deep enough to fill its gap back down to Tuesday’s close before recovering back to the morning’s highs. The only reliable path back down without yet probing fresh highs would be to gap down under Wednesday’s low. The rally’s momentum meanwhile remains intact.
Eurodollar Mar Contract (EC, ETF: (FXE))
Wednesday’s opening probe of prior lows was retraced to fill the gap back up to Tuesday’s close, neutralizing its attraction, before reversing back down to fresh lows. Closing lower again Thursday would confirm a much bigger downleg is underway, and bounces meanwhile should hold 1.3600.
Gold Feb Contract (GC, ETF: (GLD))
Fresh lows in reaction to Wednesday’s FOMC Minutes sent price lower to attack 1217.00 support. Holding it allows a probe above 1226.00 to begin signaling momentum reversing up. But resistance remains outstanding at 1230.50 and 1232.50.
Silver Mar Contract (SI, ETF: (SLV))
Wednesday’s fresh lows filled an outstanding gap back down to 19.37 where the prior surge had originated. But a close above 19.70 was avoided, which would have signaled already that momentum was reversing up.
30-year Treasury Mar Contract (US, ETF: (TLT))
Shallow dips and premature surges were proved to be reflecting excessive optimism by gapping down Wednesday. The action may prove to be bullish for leaving outstanding a gap above at Tuesday’s close, which could help to attract price higher in reaction to Friday’s Employment Situation report — that is, if left outstanding Thursday.
Crude Oil Feb Contract (CL, ETF: (USO))
Tuesday’s dip to 93.35 that recovered to 94.15 did not extend higher Wednesday to prove a low was forming. Instead, fresh lows attacked 92.00, probably on the way to 90.50-91.25.
Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Wednesday’s dip into negative territory probably signaled an early warning that the massive Head & Shoulders pattern is triggering, targeting 3.87. A favorable reaction to Thursday’s EIA report must close above 4.38 to signal the pattern was instead breaking higher.
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