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 Bonds ended the holiday-shortened week not with a whimper, but with a bang. They surged overnight in a flight-to-safety as stocks plunged. Has the bearish pattern been undone, or can Friday’s Employment Situation report fulfill this optimism?
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Thursday’s open repeated Wednesday’s gap up. And like Tuesday, the follow-through was largely contained, and the gap up was maintained. The rally remains intact so long as 80.10 holds as support.
Eurodollar Jun Contract (EC, ETF: (FXE)) Thursday’s gap down repeated Wednesday’s gap down, and also ranged sideways through the close. 1.3020 remains in-play so long as bounces hold 1.3100 as resistance.
Gold Jun Contract (GC, ETF: (GLD)) Wednesday’s close had narrowly avoided closing back above 1622.00 which would have robbed sellers of their traction to signal a corrective bounce. Thursday’s open gapped up above 1622.00 to suggest the same thing. So long as 1622.00 holds as support, a bounce targeting 1640.50 is in-play.
Silver May Contract (SI, ETF: (SLV)) Thursday’s bounce back up to 31.75 left outstanding a gap back to Wednesday’s 31.00 close. The bounce may yet extend up to 32.05-32.30, too. But a closing under 31.45 would signal the decline had resumed, next targeting 28.70.
30-year Treasury Jun Contract (US, ETF: (TLT)) An overnight surge extended higher into Thursday’s open to 139-00. Its reaction down held support at the original 137-28 sell signal. And a bounce into the close ended the day testing 138-10 resistance. Closing back under 137-28 would once again signal momentum reversing down. There is still no accumulative pattern, but closing above 138-26 and 139-05 would all but marginalize sellers. Otherwise, it seems like a lot of optimism ahead of Friday’s Employment Situation report.
Crude Oil May Contract (CL, ETF: (USO)) Thursday’s reaction up from Wednesday’s fresh low thoroughly tested 102.85 resistance. Just recovering 102.25 suggests the bounce will also test 104.70. Unless 104.70 were recovered, the decline should then resume, next targeting 98.85.
Natural Gas May Contract (NG, ETF: (UNG)) Thursday’s opening weakness accelerated back to last week’s 2.08 low in reaction to the EIA report. The low held. Closing back above 2.13 would signal the latest dip was a correction, and that a new rally leg was underway targeting at least 2.31.
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