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 plunge Tuesday undermined buying spread out over the past three days. So, fresh lows must print Wednesday if the decline’s momentum remains intact.
Dollar Basket Apr Contract (DX, ETF: (UUP, UDN)) Monday’s drop had bottomed upon testing prior lows. Tuesday’s gap open reacted up sharply, but it was all retraced back to Monday’s 79.70 close. Back above 80.10 would trigger a new rally leg.
Eurodollar Apr Contract (EC, ETF: (FXE)) Monday’s gap up had only begun testing resistance. Tuesday’s gap down recovered to fill the gap back to Monday’s close. Any potential to 1.3290 probably depends upon extending higher without delay. Back under 1.3190 would resume the decline.
Gold Apr Contract (GC, ETF: (GLD)) The likelihood for reacting down from Monday’s 1670.00 high to test 1650.00 was fulfilled immediately down to 1641.00 Tuesday. The only bullish element is the gap back to Monday’s 1666.50 close. Almost any lower close Wednesday would be likely to resume the decline next targeting 1590.00-1606.00.
Silver Apr Contract (SI, ETF: (SLV)) Tuesday’s open gapped down under 32.30 to resume the decline. More importantly, last week’s ~32.00 low was probed into the afternoon as selling pressure increased. The trend remains down so long as 32.30 is not recovered.
30-year Treasury Jun Contract (US, ETF: (TLT)) The decline’s next target at 134-10 would remain in-play so long as bounces held 135-16 as resistance. Tuesday’s open gapped up to 136-04, but dipped briefly back into negative territory at 135-07. The entire session ranged around 135-16, so the next trending attempt should be false, and reversed more substantially in the opposite direction.
Crude Oil Apr Contract (CL, ETF: (USO)) The potential for briefly rallying to fresh highs depended upon maintaining Monday’s break above 107.20. Tuesday’s open gapped down under 107.00 and extended down to 105.35. Recovering to close Wednesday above at least 107.20 would maintain the rally’s potential. Otherwise, Monday’s test of 108.00 would become an Island Reversal pointing down.
Natural Gas Apr Contract (NG, ETF: (UNG)) edit
Tuesday’s lows held repeated tests of 2.32. A fresh high above 2.42 may be the minimum requirement to avoid resuming a decline.
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