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 Crude Oil captured two headlines Monday. One, for reacting to heightened tensions between Israel and Iran. And second, for a glitch that briefly halted afternoon trading. The halt has passed, but the tensions are rising.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Friday’s gap up never extended higher, making its retracement likely. Monday’s open did gap down to test Thursday’s highs, but not to fill Thursday’s gap. Attacks on the lows are possible, but not signaled.
Eurodollar Mar Contract (EC, ETF: (FXE)) Friday’s gap down to 1.3185 extended no further intraday, making its recovery likely. In fact, Monday’s open gapped back up, not quite to Thursday’s 1.3288 close, but still holding above Friday’s 1.3200 high. Now closing under 1.3165 would signal a drop back to recent lows in the 1.3045 area. The rally could resume first, but there is no attractive buy signal at this time.
Gold Apr Contract (GC, ETF: (GLD)) Monday’s session fluctuated alternatively around Friday’s close, ending the day almost unchanged. Ultimately, 1720.00-1722.00 held its noon hour test as support, but did not launch a new upleg, so there remains potential to extend the downleg.
Silver Mar Contract (SI, ETF: (SLV)) A close under 33.40 is still needed to confirm last week’s break under 33.60 has reversed momentum down. Intraday lows attacked the confirmation, but it held. The hesitation was not exploited by a recovery, so there remains potential to extend the downleg. But the gap up to 34.00 may be filled first.
30-year Treasury Mar Contract (US, ETF: (TLT)) Gapping down Monday back under 142-12 to test 142-05 gained no traction. The balance of the morning bounced to fill the gap back up to Friday’s 142-30 close. The afternoon ranged narrowly between 142-05 and 142-12. Another bounce cannot be discounted, but almost any close under 142-05 is likely to resume the drop to 140-00.
Crude Oil Mar Contract (CL, ETF: (USO)) Gapping up above 99.15, probing 100.00, and ultimately closing at fresh highs all contributed to a rejection of the ongoing range below. So long as 100.00 and 99.15 hold as support, 103.00 and potentially 111.00 are in-play.
Natural Gas Mar Contract (NG, ETF: (UNG)) A probe of recent lows did not gain traction. Nor was the probe rejected. Closing above the 2.50 area would be of interest, but there is otherwise no active signal.
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