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 bounce left outstanding two attractions below — the gaps back to Monday’s open and close. Almost any early weakness Wednesday would confirm the decline has resumed.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Monday’s bounce had peaked upon testing 79.70-79.75 resistance, instead of closing above it to signal a rally underway. Tuesday’s reaction was more attracted to the gap back down to Friday’s 79.30 close, and to probe under its 79.20 low. There is no near-term unfinished business above or below. Closing back above 79.50 would trigger a bigger rally leg targeting 80.30.
Eurodollar Jun Contract (EC, ETF: (FXE)) Monday’s drop neutralized unfinished business below by filling the gaps back to last week’s prior high closes around 1.3145. Tuesday’s rally filled the gap back up to Friday’s 1.3220 close. There is no near-term unfinished business above or below. A pullback under 1.3185 has room down to 1.3135-1.3145 before triggering a bigger downleg. The bounce could otherwise extend next up to 1.3300 or 1.3333.
Gold Jun Contract (GC, ETF: (GLD)) Tuesday’s gap up filled the gap back to Friday’s 1642.00 close.Since Tuesday’s 1650.00 high was retraced $8 to close back under Friday’s 1647.00 prior high, almost any weakness would target the outstanding a gap back to Monday’s 1633.00 close, and to its 1626.50 open. There is otherwise no active buy parameter.
Silver May Contract (SI, ETF: (SLV)) Despite gapping up Tuesday above Monday’s 30.88 high, the bounce peaked upon testing recent “higher prior lows” at 31.11. Closing under 31.50 would resume the drop targeting 29.55 and 28.70.
30-year Treasury Jun Contract (US, ETF: (TLT)) Rallying stocks removed the flight-to-quality premium from testing 143-04, to dip back down to last week’s 142-10 highs. The pullback has room down to 141-20 before confirming momentum has reversed down. A bounce could first test 142-30 and still resolve down.
Crude Oil May Contract (CL, ETF: (USO)) Monday’s close above 102.75 produced a gap up Tuesday that tested 104.00. Its reaction down filled the gap back to Monday’s 103.00 close, leaving no unfinished business below. Closing Wednesday above 105.25 would put into play 108.25.
Natural Gas May Contract (NG, ETF: (UNG)) 2.02 was probed overnight, but Tuesday’s close was trying to defend 1.98 support, which must hold to maintain potential for extending Monday’s surge.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…