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 tumbled significantly Tuesday. It wasn’t as deep as last Wednesday’s plunge. And if it doesn’t produce a rally within hours, another tumble may not be far behind.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Monday’s narrow ranging only further delayed the break higher from Friday’s opening gap up. Tuesday’s gap up compensated for the delay. Testing the 80.20 area is likely, and somewhat likely to be probed.
Eurodollar Mar Contract (EC, ETF: (FXE)) Monday’s narrow ranging only further delayed the break lower from Friday’s opening gap down. Trending through 1.3055 would target 1.3000, where very little support remains since its last attack last month produced a significant interim bounce.
Gold Apr Contract (GC, ETF: (GLD)) Another opportunity to rally was ignored by not closing above 1708.80. The consequences this time were more substantial than avoiding the 1727.70 buy signal previously. Intraday lows fell to 1663.00 I am monitoring action at 1661.50 (which should be better tested down here) for a setup. Closing under 1661.50 could signal a new bear market underway.
Silver Mar Contract (SI, ETF: (SLV)) Not immediately resuming the corrective bounce Tuesday made the decline likelier to extend down. In fact, fresh lows tested 32.50, and could still recover, if a recovery were in-play at Wednesday’s open.
30-year Treasury Jun Contract (US, ETF: (TLT)) 140-29 support was safe from breaking lower while stocks tumbled to new lows. Tuesday’s 142-10 high retested the recent breakout point that led to last Thursday’s interim low. A pullback has room down to 141-12, but any lower would trigger a new downleg.
Crude Oil Apr Contract (CL, ETF: (USO)) Although the pullback from last week’s highs did not extend down Monday, there was no recovery attempt to gain traction. Not before the pullback did extend down to retest last week’s lows under 104.85. Closing above 107.25 would put into play 111.00.
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