Mid-day look at gold, crude and Treasuries

Gold Feb Contract (GC, ETF: (GLD))
Rallying sharply to test 1328.50 on the China / Treasuries news was isolated as Wednesday's regular open had retraced already back under Friday's1324.00 prior highs. A fresh high close would still be credible for extending, but now another test of $1308.85 per ounce would be much likelier to reverse down.

Eurodollar Mar Contract (EC, ETF: (FXE, UUP))
Tuesday's confirmation of Monday's breakout made Wednesday's gap up premature for resuming the rally, as at least one more lower close under 1.1960is now required.

Silver Mar Contract (SI, ETF: (SLV))
Wednesday's gap up immediately reversed down to test unchanged as the China /Treasuries news wore off. Closing back above $17.20 per ounce would still be credible for extending higher, but closing under 16.95 would be that much likelier to reverse the trend down.

30-year Treasury Mar Contract (US, ETF: (TLT))
Tuesdays' sharp break under 151-16 to new lows was extended down sharply overnight on the China /Treasuries news. Despite rallying out of the 149-03 open, just closing negative has confirmed Tuesday's breakout and now requires an eventual third lower close. Meanwhile, the gap down under all prior lows also wants to be filled before a recovery would be credible.

Crude Oil Feb Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Gapping to new recovery highs Wednesday was resisted by 63.52 as the session hovered narrowly. Pullbacks now have room down to $62.15 per barrel to maintain the 64.25-64.75 target.

Natural Gas Feb Contract (NG, ETF: (UNG, UNL))
Probing higher overnight to attack $3.00 per thousand cubic feet didn't prevent Wednesday's flat open or further retracing back down to the 2.86 buy signal. Thursday's EIA report is being greeted from a position of strength for the breakout, with restrained optimism for having corrected back to support. A second consecutive higher confirming close would have been stronger, but a favorable reaction or recovery from an unfavorable reaction is likely.