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.
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Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Not confirming Wednesday’s breakout on Thursday left the pattern vulnerable to Friday’s Employment Situation report, which triggered a drop back to prior lows around 80.70. The close didn’t break any lower, so there is no greater likelihood of extending down any further, instead of recovering back up into — and potentially through — the range.
Eurodollar Mar Contract (EC, ETF: (FXE))
Thursday morning’s attack on Wednesday’s highs had retraced, but it was exceeded in reaction to Friday’s Employment Situation report. A fresh high Friday morning was maintained, but closed within the 1.3660 noise range above the prior high. A second consecutive higher close would signal a new rally underway. Otherwise, the consolidation persists, along with the vulnerability to resolving down.
Gold Feb Contract (GC, ETF: (GLD))
Overnight action already had tested 1230.50-1232.50 resistance up to 1237.00. Friday’s Employment Situation report triggered a much bigger rally that probed prior highs up to 1248.50. Higher targets at 1270.00 are in-play so long as 1240.00 now holds as support.
Silver Mar Contract (SI, ETF: (SLV))
Probing above 19.70 extended sharply higher in reaction to Friday’s Employment Situation report, putting into play higher targets at 20.75.
30-year Treasury Mar Contract (US, ETF: (TLT))
There’s no doubt that the market was bottoming off of the decline’s 127-27 target that had held two tests. That was finally proved by the sharp reaction to Friday’s Employment Situation report, which surged 2 points to the highest levels in six weeks. A pullback has room down to 130-04 or 129-16, but under 129-94 would signal a retest of the bottoming pattern.
Crude Oil Feb Contract (CL, ETF: (USO))
Gapping up Friday barely improved intraday upon Thursday’s post-close gains, despite testing 93.35 early morning. The gap back to Thursday’s close was left outstanding and it will want to be filled. A more thorough retset of the 90.50-91.25 target area remains likely.
Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Extending down overnight to 3.95 was erased before Friday’s open, which was extended to 4.10. But the pattern still has at least one more lower close outstanding, and the likelihood of it visiting 3.87.
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