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 Tuesday’s price action among most futures was relatively subdued. Apart from some opening gaps, intraday volatility was minimal. Another calm before the storm?
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Monday’s testing of 81.30 support was rejected immediately by Tuesday’s gap up. A retest of last week’s 81.93 high is in-play so long as 81.30 holds as support.
Eurodollar Jun Contract (EC, ETF: (FXE)) Monday’s late surge offered dubious confirmation to Friday’s new relative high close. Tuesday’s gap down confirmed suspicions, and the morning extended lower to test 1.2725 support. Bounces should now hold 1.2740-1.2750 as resistance on the way back down to retesting last week’s 1.2645 low.
Gold Jun Contract (GC, ETF: (GLD)) Tuesday’s gap down to 1578.00 support could have formed an Island that would eventually attract price higher. But a bounce already filled the gap back to Monday’s close, before reversing back down to session lows. There is no unfinished business above, and a second consecutive lower close Wednesday would signal a retest of underway of 1552.50 and potentially also 1533.00.
Silver Jun Contract (SI, ETF: (SLV)) Monday’s gap down to 28.15 had not gained traction, making the gap back to Friday’s 28.75 close likely to be filled. Its test Tuesday was rejected that afternoon back down to 28.15. Back under 27.65-27.90 would signal a bigger decline underway.
30-year Treasury Jun Contract (US, ETF: (TLT)) Holding Monday’s test of 147-14 support suggested a fresh intraday high retesting 148-22 was likely. But Tuesday’s open gapped down to 146-28. Ranging narrowly around it all day did not give sellers traction, and now there is an attraction above back to the gap from Monday’s 148-00 close. But a second consecutive lower close would trigger a bigger decline targeting 144-20/145-04.
Crude Oil Jul Contract (CL, ETF: (USO)) Monday’s intraday failure to break above Friday’s highs kept buyers from gaining traction. Tuesday’s retest of the decline’s 92.05 (91.75 basis June) target must launch an immediate recovery above 92.70-92.90, or else a lower close would put into play 86.00.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Having held the 2.62 pullback limit through Monday’s close, Tuesday’s recovery leaves no unfinished business below. But a close above 2.72 would resume the rally, next targeting 2.87 and 3.03.
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