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Crude Oil and Gold Must Have Voted for the Other Guy


As was expected, rallies in gold and crude oil were used for absorbing selling pressure.

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.

Today's Highlight: The election is history, and now price action can be based on more known quantities. As was expected, rallies in gold and crude oil were used for absorbing selling pressure without it damaging the chart. Bottoms should develop soon, if at all.

Dollar Basket
Tuesday's test of 80.75 resistance got a second chance Wednesday to break higher and put into play 82.10. It was broken, and 82.10 remains in-play so long as 80.75 were to hold as support.

Dec Contract EC; (NYSEARCA:FXE)
Fresh lows under 1.2775 extended down to nearly 1.2740, fulfilling the Friday-Monday setup. A lower close would confirm that 1.2400 is in-play, which back above 1.2850 would invalidate.

Dec Contract GC; (NYSEARCA:GLD)
Tuesday's test of 1717.00 resistance had held, but higher highs overnight touched 1733.00. That held, too, triggering a drop down to 1703.00, which is $3 short of the 1700.00 objective. Its test remains likely so long as 1717.00 isn't recovered.

Dec Contract SI; (NYSEARCA:SLV)
Wednesday's test of 32.25 resistance was retraced down to almost 31.20. The reaction up to 31.70 should fail since its origin was 10-15 cents too high.

30-Year Treasury
Dec Contract US; (NYSEARCA:TLT)
Tuesday's reaction down from Monday's test of the 149-12 target used nearly all of its room down to 148-00. But not closing any lower left the potential for retesting 149-12. In fact, Wednesday's open gapped up to fresh highs and tested 150-18. Closing above 150-16 would target 152-16. A close under 149-04 is needed to reverse momentum down.

Crude Oil
Dec Contract CL; (NYSEARCA:USO)
Having met and held a test of the 89.00 corrective bounce target, with a requirement outstanding to test fresh lows, Wednesday's $3-1/2 plunge did retest prior lows. But no bottom formed, remaining vulnerable if not likely to probing fresh lows down to 82.00.

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.
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