Daily Spot
A weekly summary of high-profile members of several complexes.[pay]
Dollar Basket Sep (DXU) Try, try, infinity again. Wednesday’s gap down to 73.75 was under Tuesday’s low. An intraday bounce to 74.10 was retraced entirely to a fresh low that chipped away at uptrending support. A reaction up into the close held 74.15 resistance – again – creating support at 73.90. Closing beyond either is likely to extend in that direction, targeting either 74.55 above or 73.00 below.
Gold Dec (GCZ) Not so precious metal. Despite bouncing overnight to 1856.80, the 1817.40 objective attracted Wednesday’s open back down. I had noted in the morning Market Tour “close under 1817.40 and this pattern is toast, we’ll be looking for a much more substantial decline.” Too late. The session extended down to 1755.10. Just closing under 1779.00 put into play 1739.00, so long as bounces were to hold 1764.00 as resistance… CME raised margins, lower lows testing 1744.00.
Silver Dec (SIZ) Through thick and thin. The rotation ended according to Silver’s underperformance vs. Gold, making both ready to reverse down into a major downleg. And they did. This leg can extend down to 37.06 so long as 40.22 is not recovered on a closing basis.
30-year Treasury Sep (USU) Broken bonds. Tuesday’s outside day didn’t take any time to be absorbed. Wednesday’s open slid into an afternoon low at 136’24. Closing back above 138’00 on Thursday would trap shorts and target a retest of 141’06. Otherwise, the trend is down, and no more than 1-2 days of bouncing back to 139’06 should delay extending the drop back down to 133’02 and 129’00.
Crude Oil Oct (CLV) Time to turn. Wednesday’s inside day probed Tuesday’s high before closing negative. Closing under 84.80 would signal momentum reversing down, targeting 82.25 and 80.64. Otherwise, a close above 86.40 would extend the rally to at least test 88.00 resistance.
Natural Gas Sep (NGU) Getting ahead of itself? Not anymore. Tuesday’s close above 3.95 and 4.00 was retraced through Wednesday’s close. Another close above 4.00 would still be credible for sealing a bottom – perhaps Tuesday’s break was premature ahead of Thursday’s EIA report.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…