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 Tuesday’s release of FOMC Minutes captured the attention of markets across the board. That is to say, anticipation for its release kept a lid on volatility. Then the news hit, without mention of QE3, taking bonds and Gold down hard.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Narrow ranging Tuesday once again held a test of the gap back to Friday’s 78.99open. The FOMC news triggered a surge to 79.65. A second consecutive close above 79.70 would seal a bottom and put into play a rally targeting 80.70.
Eurodollar Jun Contract (EC, ETF: (FXE)) Tuesday ranged narrowly around 1.3333 until FOMC news sent price sharply lower to 1.3218. That’s under all of last week’s lows. A second consecutive lower close under 1.3220 would confirm a new downleg underway targeting 1.3020.
Gold Jun Contract (GC, ETF: (GLD)) Tuesday’s close under 1678.50 robbed the corrective bounce of its momentum. The effect was quickly realized, as FOMC news triggered a plunge down to 1640.20. Resistance at 1657.00-1661.00 is likely to be retested since it was largely ignored as support on the way down. Regardless, recovering 1657.00-1661.00 is the minimum requirement to resume the rally.
Silver May Contract (SI, ETF: (SLV)) Despite recovering Tuesday’s gap down to probe above Monday’s high up to 33.30, the FOMC reaction triggered a plunge to fresh session lows testing 32.50. That is also natural support at “lower prior highs,” making a bounce likely back to 32.90-33.10.
30-year Treasury Jun Contract (US, ETF: (TLT)) Gapping up to test Monday’s 138-22 high was pointless when there was no accumulative pattern. The plunge to 136-17 on FOMC Minutes proved why. There was no bullish reason to retest this prior low. Extending any lower Wednesday — or at least holding 137-10 as resistance — would confirm a new downleg underway targeting 136-26 and 134-10.
Crude Oil May Contract (CL, ETF: (USO)) Tuesday’s dip held 103.65 support. The dip was relatively shallow, which was its only consistency with Monday’s impressive recovery from the opening dip. Regardless, a valid rally should resume without delay.
Natural Gas May Contract (NG, ETF: (UNG)) Tuesday’s opening surge held its test of 2.20 resistance through the day. The pattern is potentially accumulative, but has yet to form a trigger.
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