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 tumbled to new lows that fulfilled its next objective, while Crude Oil fulfilled the retest of Sunday night’s low. These may form bottoms here, but I wouldn’t trust a rally that suddenly turned up on a dime. The Natural Gas surge to new recovery highs is much more credible for extending.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) New highs at 80.05 Tuesday was retraced back to the 79.80 opening print, and back under Monday morning’s 79.87 high. Buyers gained no traction for their efforts. But a pullback would have room down to 79.70 before the rally would lose its traction.
Eurodollar Jun Contract (EC, ETF: (FXE)) Tuesday’s 1.2984 low still recovered back above 1.3010 to avoid confirming a much bigger drop underway. But closing under 1.3000 Wednesday would still qualify. Otherwise, a bigger corrective bounce would target 1.3115-1.3120.
Gold Jun Contract (GC, ETF: (GLD)) Tuesday’s gap down from having held 1644.00 resistance extended sharply lower to fulfill the outstanding 1617.00 objective. It was even probed below 1600.00. A second consecutive lower close under 1617.00 would confirm the decline’s next objective at 1584.00 is in-play. Otherwise, closing above 1617.00 Wednesday could extend to test higher prior lows at 1632.00.
Silver Jun Contract (SI, ETF: (SLV)) Gapping down to new lows Tuesday at 29.55 and extending to new lows at 29.14 still recovered almost back to the 29.55 open. There continues to be no buy signal for this pattern.
30-year Treasury Jun Contract (US, ETF: (TLT)) Sunday night’s test to within 1 tick of the 144-20 target all but required a retest, despite having been retraced entirely Monday back to unchanged at 143-18. Monday night’s falling stocks encouraged fresh highs up to 144-27. Now a break back under 144-02 would signal this rally leg had ended, and closing under 143-22 would signal momentum reversing down. There is otherwise potential for extending higher up to 146-28.
Crude Oil Jun Contract (CL, ETF: (USO)) Sunday night’s low had met and held the 95.50 target. The requirement to retest it intraday was fulfilled Tuesday to within 2 cents. Opening Wednesday above 97.95 would trigger a bigger corrective bounce targeting 100.75 and potentially 104.00. There is otherwise no buy signal.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Price action continued to acknowledge the 2.30 pullback limit. Tuesday’s open gapped under it, ranged around it, and then surged to new recovery highs that fulfilled the 2.44 target. The next higher objective remains 2.50, now so long as 2.40 holds as support.
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