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 While Gold and the Euro each plunge into tests of very important targets, each is forming a pattern that tends to resolve either in an up-crash, or a down-crash. I call it the (up)crash(down), and it forms in 10-11 consecutive sessions that contain only 1-2 counter-trend closes. It tends to resolve either by accelerating the current trend, or by reversing it.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Gapping open to 80.70 Monday fulfilled a lot of selling pressure. So, only shallow dips are allowed for optimal confirmation that the 81.10 and potentially 82.00 targets remain in-play.
Eurodollar Jun Contract (EC, ETF: (FXE)) Monday’s open gapped down to fulfill its next major target at 1.2850. There is potential down to 1.2725 on this leg so long as bounces were to hold 1.2875 as resistance.
Gold Jun Contract (GC, ETF: (GLD)) The requirement to retest last Thursday night’s 1572.00 low down to 1568.00 was done Monday down to 1555.00. Despite plunging $28, the session’s 1561.40 was still being tested at the close. An Island Reversal would require gapping up above 1578.50. Otherwise, any bounce would be likely to hold 1584.50. The trend otherwise remains down and next targeting 1526.50.
Silver Jun Contract (SI, ETF: (SLV)) Friday’s outperformance that I noted yesterday was essentially negated by Monday’s close at new lows. It can be reinstated by gapping up Tuesday above 29.00, but the trend otherwise remains down.
30-year Treasury Jun Contract (US, ETF: (TLT)) Falling stocks, Gold and Euro (take your pick) kept alive the flight-to-quality. And Friday’s test of its 143-05 target — not having been rejected through the close — was extended up to 146-15. Post-open action essentially ranged sideways, and the close essentially returned to the opening print, so the rally has extended grudgingly. Its objective is 146-28, so long as 145-20 were not broken through any close.
Crude Oil Jun Contract (CL, ETF: (USO)) Too much delay in recovering from the 95.50 target had made new lows likely to resume the decline. Sunday night’s drop to fresh lows was maintained through Monday. Absent gapping up above 95.50 Tuesday, the trend remains down and next targeting 91.75.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) The rally’s 2.50 target continued to hold as resistance, as Monday’s session dipped under 2.45. While a deeper pullback should be unavoidable, first spending so much time at the target suggests that any pullback would be only a correction that resolves up in new highs.
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