The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.
Crude oil’s corrective bounce ended abruptly Wednesday. The reaction seemed somewhat outsized compared to the news that triggered it, so I may be lowering my next target soon.
Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Tuesday’s touch of 70.55 support did prove to be the range’s lower-end when Wednesday gapped up to test the 80.10 prior high at the range’s upper-end. A breakout must trigger without delay Thursday to extend the rally, or else a drop back to and through the range’s lower-end would become likely.
Dec Contract EC; (NYSEARCA:FXE)
Tuesday’s temporary intraday probe above prior highs did prove to be “ineffectual optimism” when Wednesday slid back to Monday’s 1.2900 close. That’s less damaging than the session could have been, so a bounce back above 1.2955 would be credible for triggering a rally targeting the 1.3100 area.
Dec Contract GC; (NYSEARCA:GLD)
Wednesday’s narrow intraday ranging offered no new information, other than to confirm the rally’s momentum is not reliable.
Dec Contract SI; (NYSEARCA:SLV)
Like gold, Wednesday’s narrow intraday ranging offered no new information, other than to confirm the rally’s momentum is not reliable.
Dec Contract US; (NYSEARCA:TLT)
Overnight strength up to 150-06 was erased before Wednesday’s open to range narrowly intraday. That would have sufficed for the false break we have been monitoring, but the non-reaction disqualifies it. Still awaiting a fresh high to be rejected, or an open under 148-10, to reverse momentum down.
Nov Contract CL; (NYSEARCA:USO)
Two-three days spent ranging in and around 91.20-93.00 did contain the corrective bounce from testing the drop’s 89.75 target. The 87.00 target remained in-play, as Wednesday’s gap down that extended to fresh lows at 88.00 has confirmed.
Nov Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
The 3.58 target was denied in favor of opening $.01 under the 3.45 pullback limit and extending down another dime. Back above 3.45 Thursday would reinstate the rally’s momentum.
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