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 European election fallout helped currencies to extend their recent trending, while taking the long bond and Crude Oil to their targets.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Gapping up from Friday’s 79.60 close tested 80.10 resistance Sunday night. Price dipped from there into Monday afternoon, retracing almost all gains. Closing above 79.75 Tuesday would confirm a much bigger rally is underway.
Eurodollar Jun Contract (EC, ETF: (FXE)) Sunday night’s gap open under 1.3050 extended down sharply to support at 1.2955. A recovery to 1.3050 by early morning was probed higher and higher through the afternoon. Closing under 1.3010 Tuesday would confirm a much bigger drop is underway.
Gold Jun Contract (GC, ETF: (GLD)) There wasn’t much reaction to Sunday’s elections and to the Euro’s rout. There didn’t need to be. Gapping down Monday under 1644.00 was enough to confirm that Friday’s buyers gained no traction for their efforts. The 1638.00 sell signal was still being tested at the close. A downleg may be premature before a temporary intraday rally fills the gap back to Friday’s 1644.50 close.
Silver Jun Contract (SI, ETF: (SLV)) Fresh lows intraday down to 29.70 still recovered to end the day testing the 30.00 sell signal. It is difficult to give sellers any credibility, but there is no active buy signal.
30-year Treasury Jun Contract (US, ETF: (TLT)) The flight-to-safety amid Sunday night’s falling stocks initially rallied to within 1 tick of the 144-20 target. All gains were retraced to 143-18. Sunday night’s high should be retested so long as pullbacks hold 143-08.
Crude Oil Jun Contract (CL, ETF: (USO)) The next lower target at 95.50 was tested early Sunday evening on the open’s $3 dive. It was almost entirely recovered, but not into positive territory. Sunday night’s 96.95 opening print should be retested before any rally can be credible.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Friday’s redundant close under the 2.30 pullback limit was rejected again by gapping up above it. It held through the day, although price never extended higher. But it does keep alive potential to resume and extend the rally, next targeting 2.44 and 2.50.
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