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 Gold’s sell-off Monday required an immediate and substantial recovery to maintain the rally’s potential to new highs. Tuesday’s strong gain obliged.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) The gap back down to Friday’s 78.37 close was filled Tuesday, and it held. The open’s gap down also held as support through the close. Closing any lower could trigger a new downleg. There is otherwise only a vulnerability to reversing up.
Eurodollar Mar Contract (EC, ETF: (FXE)) Tuesday’s gap up dipped negative briefly, but recovered back to the morning’s highs. While closing above 1.3425 does signal the rally’s resumption, next targeting 1.3575, closing above 1.3485 Wednesday’s would be necessary to confirm. Otherwise, closing back under 1.3390 would trigger at least a deeper corrective pullback targeting 1.3200.
Gold Apr Contract (GC, ETF: (GLD)) The rally’s immediate requirement to recover 1778.00-1780.00 and to extend higher was fulfilled Tuesday as the session extended up to 1792.70. Pullbacks must now hold 1784.00 as support to confirm tests of 1811.50 and 1825.50 are in-play.
Silver Mar Contract (SI, ETF: (SLV)) A rally was required to begin Tuesday morning to avoid another sell-off. In fact, the open gapped up 50 cents to new a high at 36.10 and extended sharply higher intraday to 37.22. The 36.70-37.35 area offered very little support on the way down, so it should present a more difficult resistance being tested from below.
30-year Treasury Mar Contract (US, ETF: (TLT)) Tuesday’s probe 11 ticks above Monday’s high to 144-14 was retraced to close negative, still testing 143-28. Now almost any dip under Tuesday’s 143-21 low would be credible for extending down to fill the gap back to Friday’s 143-00 close.
Crude Oil Apr Contract (CL, ETF: (USO)) The pullback extended deeper to 106.30 without first testing 111.00. That is still too shallow for an eventual test of the 111.00 target to avoid collapsing — recovering to close back above 106.50 after testing 105.50 intraday would be more bullish.
Natural Gas Mar Contract (NG, ETF: (UNG))Tuesday’s open gapped down and extended down, leaving the recent probes of fresh highs behind. Now monitoring for a new accumulation pattern.
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