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 steals the spotlight again, having tumbled more than $40 since fulfilling its bounce target Tuesday. Its corrective bounce target.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) 79.55 was attacked early Wednesday, but not triggered by the close. It remains the buy signal, if recovered through the close.
Eurodollar Jun Contract (EC, ETF: (FXE)) An early dip to attack 1.3285 was followed by a series of higher highs and higher lows. This was interesting when considering that Gold extended to lower lows. At least the bounce held 1.3333 as resistance to avoid resuming the rally. Closing under 1.3285 would trigger a new downleg.
Gold Apr Contract (GC, ETF: (GLD)) Wednesday’s open immediately tested 1670.00, further extending the reaction to Tuesday’s test of the 1691.00 corrective bounce limit. A close under 1676.00 was needed to signal momentum actually reversing down. Its test as resistance produced new session lows at 1654.00. That is a 61.8% retracement of the bounce from last Thursday’s Island, so now bounces must hold 1660.00-1663.50 to maintain the decline.
Silver Apr Contract (SI, ETF: (SLV)) The decline’s resumption required closing back under 32.25. Wednesday’s open gapped down to it, and extended sharply lower to 31.77. Closing under 31.75 would confirm the retest of last week’s 31.07 low was underway, targeting 30.90 and 29.60.
30-year Treasury Jun Contract (US, ETF: (TLT)) Wednesday’s gap down from testing 138-10 stopped several ticks short of triggering the 137-20 sell signal. A recovery into the noon hour probed fresh highs at 138-27. The balance of the afternoon ranged sideways around 138-10, so now a close under 137-28 would signal momentum reversing down.
Crude Oil May Contract (CL, ETF: (USO)) Extended narrow ranging under the 107.70 buy signal gapped down to 105.80 and extended more than $1 lower intraday. This does not lower the buy signal; rather it makes the drop likelier to extend lower.
Natural Gas Apr Contract (NG, ETF: (UNG)) Tuesday’s fresh low was extended Wednesday by gapping down slightly. But the immediate drop did not extend, and an afternoon bounce filled the gap back to Tuesday’s close. This action is still forming a pattern with bottoming potential, but it is still premature to determine that the bottom is done forming.
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