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’s plunge Thursday night was entirely in-line with its intraday setup. Its intraday bounce has already expended any pent-up buying pressure that would have ensured another rally attempt after the weekend.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Friday’s gap up to 82.70 reacted down intraday to close back under 82.35. Closing above 82.70 Monday would resume the rally. There is otherwise no active signal.
Eurodollar Jun Contract (EC, ETF: (FXE)) Thursday I pointed out the pattern’s eery similarity to the S&Ps recent peak. An overnight plunge down to 1.2435 quickly fulfilled expectations. Back above 1.2540 would signal a retest of Thursday’s 1.2600 close. Otherwise, the 1.2325 target remains in-play.
Gold Aug Contract (GC, ETF: (GLD)) The drop’s next lower target at 1553.50 was attacked to within $3 by a $33 drop before Friday’s open. It was all retraced into the afternoon, and extended higher into the close. But the 1596.00 bounce limit was not recovered, only touched, so a close under 1574.00 would still trigger a new downleg.
Silver Jul Contract (SI, ETF: (SLV)) Friday’s gap down extended Thursday’s plunge a little deeper. But it was ultimately recovered to close flat. The gap back up to 29.40 and the outstanding target at 30.00-30.35 is not actively targeted, but still likely to be tested.
30-year Treasury Jun Contract (US, ETF: (TLT)) Strong support at 148-18 was confirmed by Friday’s gap up to test 150-10. Strong attraction to support was confirmed by the session-long reaction back down to it at the close. The gap back to Thursday’s close was filled almost as quickly as it was created, neutralizing its attraction below. And the attraction back to Friday’s opening gap up remains outstanding.
Crude Oil Jul Contract (CL, ETF: (USO)) The rejected tests of 86.00 resistance reacted down sharply after Thursday’s close to test 82.00. A session-long bounce into the close ended the day testing 84.00 resistance. This keeps alive potential to retest the 81.25 actual overnight low. But closing above 85.00 would signal a bigger rally leg underway.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL)) There was no second consecutive lower close Friday, so Thursday’s plunge to new lows was not confirmed. Closing above 2.37-2.39 Monday would signal that a correction had ended.
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