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 Crude Oil’s pullback extended into a reversal, disappointing Tuesday’s unconfirmed breakout. The pattern is not yet bearish, although there’s nothing bullish about failing to exploit a breakout. Meanwhile, Gold is just one lower close away from confirming new lows are in-play.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) The required probe above Wednesday’s 79.40 high was quickly retraced just under Wednesday’s low to 79.15. The balance of the session ranged narrowly around unchanged. That action is not very revealing of direction, but it does reflect the ability to react, which is very interesting ahead of Friday’s Employment Situation Report.
Eurodollar Jun Contract (EC, ETF: (FXE)) Thursday fulfilled both its room for a corrective bounce to 1.3200, and its potential for gapping down otherwise. But not in that order. The open gapped down sharply to 1.3183, and reacted up to 1.1300. But the majority of the session settled in to the 1.3145-1.3160 range. A second consecutive lower close under 1.3185 would have been more bearish to close under 1.3145. But a bounce should be absorbed nonetheless.
Gold Jun Contract (GC, ETF: (GLD)) Thursday’s gap down to prior lows slid through its 1644.00 objective to test and retest 1632.00. The decline has resumed, next targeting 1617.00, so long as bounces hold any test of 1638.00.
Silver Jun Contract (SI, ETF: (SLV)) There was no delay Thursday in extending down from the repeated testing of 31.05 and 30.65. New lows at 29.83 ended the day testing 30.00. The trend remains down so long as 30.65 continues holding as ressitance.
30-year Treasury Jun Contract (US, ETF: (TLT)) Thursday morning’s dive held a test of 142-10, bouncing optimistically instead of dipping slightly lower to fill the gap back down to Tuesday’s 142-05 close. Its recovery to 143-00 gained no traction, and any new test of 142-10 is likely to probe sharply lower — closing under 141-20 would confirm a much larger downleg underway. There is no active buy signal, but that does not preclude there being a very favorable reaction to Friday’s Employment Situation Report.
Crude Oil Jun Contract (CL, ETF: (USO)) Thursday’s open did not immediately reject or retrace any of Wednesday’s pullback. The 105.25 level failed to hold, and 102.75 support was probed intraday. The minimum requirement to reversing momentum up is to close above 103.75-1.04.00, which is otherwise resistance.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Wednesday’s close under 2.30 was rejected by Thursday’s open gapping up to it and through it. Tuesday’s prior highs were retested, keeping in-play 2.44 and 2.50 so long as 2.30 holds as support.
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