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 The Euro was trashed at Wednesday’s open. Its session low was not arbitrary, but critical support. Its test was not entirely rejected, so a fresh low is all but required.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Despite reacting down throughout the day from gapping up, Wednesday’s close was still above Tuesday’s. And that was a second consecutive higher confirming close. A fresh high above Wednesday’s 79.40 high is likely, whether or not as part of an extended rally. So, any corrective dip to 78.85-79.00 should still recover.
Eurodollar Jun Contract (EC, ETF: (FXE)) A break from Tuesday’s test of 1.3220 to close under 1.3185 would have triggered a bigger downleg. The overnight break under 1.3185 did extend sharply lower for Wednesday to gap down to 1.3145 support. The pattern should either bounce Thursday to test 1.3200 before extending down, or else probably gap down to extend the decline.
Gold Jun Contract (GC, ETF: (GLD)) Monday’s dive to 1645.00 was recovered and reversed to new relative highs testing 1672.00 through Tuesday morning. Tuesday afternoon’s behavior sounded the warning bells. And now Wednesday has retraced back down to 1646.00.A late bounce attacked 1657.00, and not recovering it would next target 1644.00. Closing above 1661.00 would not itself be bullish, but it would undermine sellers.
Silver Jun Contract (SI, ETF: (SLV)) Wednesday’s close was still testing 30.65, instead of breaking under it which would have triggered a new downleg underway. Closing under 30.40 would still be bearish, and recovering 31.05 would undermine sellers.
30-year Treasury Jun Contract (US, ETF: (TLT)) Tuesday’s break under 142-10 had a bounce limit of 142-14, which was already being probed after Tuesday’s close. Wednesday’s ADP report triggered a gap up back to the week’s highs testing 143-02. There is still no buy signal, but there is a gap outstanding back down to Tuesday’s 142-05 close that should try attracting price down. And there is still a sell signal at 142-10.
Crude Oil Jun Contract (CL, ETF: (USO)) Wednesday’s open gapped down and spent the session essentially ranging narrowly around the 105.25 buy signal that had triggered Tuesday. If the signal were valid, then the rally should resume Thursday with no deeper or longer of a pullback.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Wednesday morning’s pullback held the 2.30 pullback limit. But a break lower tested 2.23. No pullback at all was required before extending the rally higher, so the pattern probably won’t tolerate much longer of a pullback. The resolution to Thursday’s EIA report could make the difference between resuming either this week’s rally or the prior decline.
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