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 Can Gold stretch the rubber band any tighter without breaking it? If not, then at this stage it should snap back up sharply.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Fresh highs overnight up to 81.75 were only attacked intraday to within a nickel At least its retest is likely, if not also fulfilling potential up to 82.00, so long as pullbacks now were to hold 81.30 as support.
Eurodollar Jun Contract (EC, ETF: (FXE)) After fulfilling the long-outstanding potential to 1.2725 Tuesday, Fresh lows were probed overnight down to 1.2760. But bounces throughout the day continually probed 1.2725 as resistance, which was still being tested at the close. Avoiding capitulation is not necessarily bullish until an aggressive rally becomes obvious, which would be triggered above 1.2833.
Gold Jun Contract (GC, ETF: (GLD)) Sharply lower lows overnight soon fulfilled the drop’s next target at 1526.50. The morning’s bounce back up to 1552.00 was retraced back down to 1530.50. The overnight low should be retested, but closing back above 1537.00 would signal that a low was forming. Otherwise, the next lower target is 1501.00.
Silver Jun Contract (SI, ETF: (SLV)) Wednesday’s gap down to 27.35-27.40 launched a bounce back up to Tuesday’s 27.90 higher prior lows. This narrowly missed filling the gap back to Tuesday’s 28.00 close before reversing down to new lows at 26.73. Closing Thursday back above 28.00 would target 28.65, but the trend otherwise remains down.
30-year Treasury Jun Contract (US, ETF: (TLT)) Potential to fresh highs was limited to only 146-31 overnight. So, the morning’s reaction down to 145-25 was unable to gain traction. And no wonder, since the session recovered to new highs at 147-02. This may finally be the trend-ending surge we have been expecting, which would seal a top by closing back under 146-06. Otherwise, the surge can still test 147-08/147-10.
Crude Oil Jun Contract (CL, ETF: (USO)) The next lower objective at 91.75 was met to within a nickel overnight before Wednesday’s open. It was never tested intraday, and the close was under the morning’s low, suggesting a retest of 91.75 coming Thursday.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Two pullbacks had tested 2.40 and 2.45, not yet dipping deeper to retest the prior consolidation. Despite that shallow correction, Wednesday’s open gapped up already surged through the rally’s original 2.50 target, and extended up to 2.63. The rally’s momentum remains intact and next targeting 2.68 so long as pullbacks now hold 2.55 as support..
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