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 reactions from Sunday night’s extremes persisted through Wednesday. Following-through an extra session suggests that their levels should be considered predictive, and that ever breaking them would trigger a very durable reversal in the opposite direction.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Wednesday’s open blipped down before recovering into the afternoon, touching two-week old highs. Piercing them with almost any upside follow-through Thursday should be able to extend higher throughout the day.
Eurodollar Mar Contract (EC, ETF: (FXE))
Initial firming Wednesday reacted down from touching 1.3580 resistance to keep alive the potential for resuming the decline.
Gold Feb Contract (GC, ETF: (GLD))
The drop underway from Sunday night through Tuesday morning didn’t resume Wednesday morning, and ultimately avoided a lower close that would resume the decline. But a close back above 1246.00 and 1248.50 was also avoided, so the rally hasn’t yet resumed.
Silver Mar Contract (SI, ETF: (SLV))
Narrow ranging Wednesday held above 19.70 to avoid gaining downside traction, but did not reject Tuesday’s test to try resuming the rally.
30-year Treasury Mar Contract (US, ETF: (TLT))
Gapping down Wednesday left no unfinished business above at Sunday night’s highs to prevent trending down. And a post-open bounce filled the gap at Tuesday’s close to neutralize its attraction. Trending down without first retesting Sunday night’s highs would not be optimal, but still credible if there is a second consecutive lower close Thursday.
Crude Oil Mar Contract (CL, ETF: (USO))
Despite extending higher through Wednesday’s open to test 96.90, the bounce pattern still offers no long-entry signal to participate. Closing back under 94.75 would start to signal momentum reversing down.
Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Just rallying into Tuesday’s open above 4.34 after gapping down Sunday night to 4.20 already indicated the Head & Shoulders downleg wouldn’t resume. It also created the vulnerability to extending higher, which Wednesday’s open exploited by gapping up above the bounce’s 4.48 highs at 4.60 and extending higher intraday to test 4.70. Now 4.77 and potentially 4.97 are in-play.
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