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 It’s working already! Crude Oil dropped nearly $3 from yesterday’s high. This was only one day after the announcement of a crackdown on its speculators. One day after having gapped up ahead of the crackdown threat. But one day does not a make a trend.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) The rally was free to resume, and Wednesday’s open did gap up sharply to test 80.00. But the gap back down to Tuesday’s 79.62 close was soon filled, and the balance of the session ranged just above it. While the rally could still resume, Wednesday’s false start suggests at least a little more intraday weakness coming first.
Eurodollar Jun Contract (EC, ETF: (FXE)) Despite Tuesday’s hesitation suggesting one more fresh high was likely to test 1.3200, Wednesday’s open gapped down to 1.3100 and through support. Closing any lower would signal a new downleg underway, but the gap back to Tuesday’s close was filled. There remains potential to test 1.3200.
Gold Jun Contract (GC, ETF: (GLD)) Tuesday’s recovery from its deep 1635.00 intraday lows was not necessarily bearish. And it wasn’t bullish enough to offset being a second consecutive lower close under 1657.00. But it did earn enough respect that gapping open Wednesday above 1661.00 would have still been bullish. Nevertheless, Wednesday’s open gapped down, testing and retesting 1640.00, suggesting a new downleg was underway.
Silver May Contract (SI, ETF: (SLV)) Ranging Wednesday between 31.45-31.75 continued to prevent any buy or sell signal from being identified.
30-year Treasury Jun Contract (US, ETF: (TLT)) Tuesday’s session-long narrow consolidation at 141-06 undermined its relevance as a sell signal. And although not required, Wednesday’s highs filled the gap back up to Monday’s 141-27 close. Now closing under 141-06 would once again be credible for triggering a sell signal targeting 139-08. There is otherwise no buy signal active.
Crude Oil May Contract (CL, ETF: (USO)) One day after testing the 104.70 bounce target up to 105.20, the gap back down to Monday’s 102.95 close was filled. The 102.25 support was tested. But the 102.25 support held. Now just closing above 104.70 would target 107.75 and potentially 111.75. Closing under 102.25 would still target 98.85.
Natural Gas May Contract (NG, ETF: (UNG)) Tuesday’s 1.94 new intraday lows were “ineffectual pessimism” for only testing Friday’s 1.96 prior lows. But Wednesday’s bounce to 1.99 was retraced entirely back down to 1.94, so no bottom has yet formed.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…