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 The Euro made fresh recovery highs Monday, without Gold coming along, after lagging behind Gold on Thursday. A useful object lesson in not relying on correlated markets to turn in unison, or to the same degree.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Despite already testing it at Friday’s weak close, Monday’s probes under 81.30 failed to gain traction, and 81.30 was still being tested at the close. Back above 81.55 would resume the rally next targeting 82.00.
Eurodollar Jun Contract (EC, ETF: (FXE)) Friday’s last-minute surge to 1.2788 wasn’t immediately rejected, but it was retraced somewhat. And then it was probed up to 1.2814. Monday’s second consecutive higher close suggests a bottom is forming, targeting 1.2920, so long as 1.2725 were to hold as support.
Gold Jun Contract (GC, ETF: (GLD)) The third consecutive session of the upcrash setup normally peaks into that morning’s strength. But there was no strength Monday as the session ranged narrowly around unchanged. A fresh high would still target 1611.00, and back under 1578.00 would signal momentum reversing down.
Silver Jun Contract (SI, ETF: (SLV)) Monday’s gap down retraced all of Friday’s gains back to Thursday’s close. But the balance of the session only ranged narrowly sideways instead of extending down. So, the gap back to Friday’s 29.70 close is likely to be filled.
30-year Treasury Jun Contract (US, ETF: (TLT)) Bonds naturally softened as stocks rallied Monday, losing their utility as a “flight-to-quality.” But weakness was relatively soft compared to the stock market rally, holding a pre-open test of the 147-14 sell signal. Its break would still be bearish, but a retest of 148-22 has become more likely first.
Crude Oil Jun Contract (CL, ETF: (USO)) Not only was 91.75 recovered through Monday’s close, but Monday’s open was already well on its way to rejecting Friday’s close under it. Recovering Friday’s 92.70 high before the close would have been more convincing than afterward. But any initial follow-through Tuesday would get a benefit of the doubt for extending higher.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Monday’s open gapped down and the balance of the session weakened to 2.59 — effectively still testing 2.62 as support through the close. The gap back to Friday’s close will want to be filled, sooner rather than later, especially if Tuesday’s open were not immediately resuming Monday’s drop..
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