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 Extreme volatility Thursday may be responsible for the mother of all head fakes among currencies. That would suggest Gold will hold its nearby target, assuming it extends just a little further to get there. Interestingly, the volatility didn’t upset Crude Oil’s slow-but-steady upward trajectory — perhaps there’s some stored up selling pressure yet to be released.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Gapping down Thursday was not the follow-through a rally needed. As if in recognition of this shortcoming, the balance of the session trended down considerably. Price action through Wednesday was not distributive, so the gap back to its close is likely to be filled.
Eurodollar Mar Contract (EC, ETF: (FXE))
Reacting down Wednesday from 1.3580 resistance didn’t prevent gapping up through it Thursday. There was no accumulation prior to the surge, so a retest of 1.3580 is likely before an uptrend could gain traction.
Gold Feb Contract (GC, ETF: (GLD))
Thursday’s open gapped up to 1248.50 and then extend sharply higher to retest Sunday night’s 1262.00 high up to 1267.00. Closing back under 1262.00 would signal that at least a corrective dip down to 1246.00 was underway. Otherwise, 1270.00 remains in-play.
Silver Mar Contract (SI, ETF: (SLV))
Gapping up and extending higher intraday peaked upon filling its gap back to Friday’s 20.30 close, and then reversed down sharply. The recovery’s momentum remains intact so long as 19.95 holds as support.
30-year Treasury Mar Contract (US, ETF: (TLT))
Wednesday’s dip left no unfinished business above, making any initial strength that much likelier to trend higher intraday. Sunday night’s 131-20 high was probed by a new highs up to 132-20. Closing back under 132-12 suggests that at least a corrective dip back down to 131-20 or lower is likely.
Crude Oil Mar Contract (CL, ETF: (USO))
Fresh highs Thursday extended the bounce to attack 98.00, now being likely also to test 98.55. If tested, the reaction there will be key to identifying the next leg’s direction and objective.
Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Thursday’s gap up was actually reacting down from a pre-open attack on 4.97. Ultimately, what was the next higher target in-play at 4.77 failed to support the close. Thursday’s 4.88 opening print should be retested at some point, but it must be recovered through the close to extend the rally. Meanwhile, recent cold weather is forecast to break again into the weekend.
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