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 Several markets that ranged narrowly Tuesday — Currencies, Gold, Bonds — tend to correlate inversely to stocks. Being the second such consecutive session, while stocks firmed further, suggests that stocks may be straying too far from the field.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Monday’s pullback had held 82.70 support, but Tuesday’s gap up did not resume the rally. But the recent 82.67 high’s retest remains likely so long as 82.70 continues to hold as support.
Eurodollar Jun Contract (EC, ETF: (FXE)) Tuesday’s gap down was a natural reaction to two days of firming that did not recover a single prior high. The session only ranged narrowly around 1.2425, leaving Friday’s low likely to be retested.
Gold Aug Contract (GC, ETF: (GLD)) Tuesday’s price action duplicated Monday’s narrow range, maintaining potential to test the 1635.00-1642.00 target area.
Silver Jul Contract (SI, ETF: (SLV)) Gapping up Tuesday did not extend higher, and the session remained within Monday’s range. Extending higher without delay still would target 30.00-30.35. There is otherwise no active signal.
30-year Treasury Jun Contract (US, ETF: (TLT)) The first break from Monday’s “inside day” was down, gapping lower Tuesday. This tends to be false directionally, which maintains potential for extending higher to 153-04.
Crude Oil Jul Contract (CL, ETF: (USO)) Monday’s post-close action had firmed above the intraday range, but remained within Friday’s range to still be an “inside day.” Monday’s post-close firming was repeated Tuesday, but not improved. There is no active signal.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL)) Monday’s gap up had formed an Island of Friday’s intraday ranging. Tuesday’s gap up helped to confirm. Closing above 2.50 would resume the rally.
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