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 Natural Gas was Monday’s highlight, rejecting Friday’s gap down by gapping back up, and forming an Island Reversal.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Monday’s second consecutive pullback neutralized an open gap below at 82.60, and still managed to hold its test of the rally’s original 82.70 target as support. A top here is unlikely
Eurodollar Jun Contract (EC, ETF: (FXE)) Friday’s “key reversal” firmed further Monday, even Sunday night while S&Ps were sliding to new lows. Two consecutive sessions have closed higher, the latest one neutralizing an open gap above at 1.2485, but without closing above a prior high. Perhaps 1.2600 will be tested in the process, but the bounce should fail back under 1.2385 to resume its 1.2288 target.
Gold Aug Contract (GC, ETF: (GLD)) Friday’s 1632.00 high was never retested Monday, as currencies also were relatively subdued. The lack of reaction down while remaining relatively close to the 1635.00-1642.00 target area suggests that it will be tested before sellers can gain any traction.
Silver Jul Contract (SI, ETF: (SLV)) Without Monday following through on Friday’s recovery attempt, fresh highs were not attacked. But 30.00-30.35 should still be tested so long as pullbacks were to hold 27.90 as support.
30-year Treasury Jun Contract (US, ETF: (TLT)) Monday’s 151-04 pullback limit was attacked to within 2 ticks to maintain potential for extending the rally up to 153-04. The “inside day” does suggest the first break either way may be false, and reversed more substantially in the opposite direction.
Crude Oil Jul Contract (CL, ETF: (USO)) Monday’s “inside day” followed an overnight probe of fresh lows down to 81.21, as was likely. A post-close break higher still peaked within Friday’s range, so there is no active signal.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL)) Monday’s gap up fulfilled the only potential bullish pattern, rejecting Friday’s gap down and “ineffectual pessimism.” Closing above 2.50 would still signal momentum reversing up.
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