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 reaction to the weekend’s Spain bailout had all but disappeared by Monday’s open. And it was reversed in many cases Monday intraday. This can reveal weaknesses in sponsorship. The long bond is one example, having recovered from sharply lower levels overnight to suggest that the rally’s highs will soon be retested. Meanwhile, Crude Oil is attacking last week’s overnight lows, which will neutralize their attraction.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Sunday night’s deep drop disappeared by Monday night’s open. The bounce stopped short of 82.70, whose recovery would resume the rally. But just closing back above 82.35 still keeps the door open.
Eurodollar Jun Contract (EC, ETF: (FXE)) By late Monday morning, the market was ranging narrowly at unchanged around 1.2515, which persisted through the afternoon. Neither the overnight gap up to 1.2645-1.2665 or the regular session’s gap up to 1.2555 require being retested. So long as 1.2555 is not recovered, the 1.2325 remains in-play.
Gold Aug Contract (GC, ETF: (GLD)) Sunday night’s reaction to Spain’s bailout triggered a rally to 1609.00. But there wasn’t much left by the open. A dip into negative territory held 1584.00 as support to prevent sellers from gaining traction. Regardless, closing higher Tuesday would be credible for retesting Sunday night’s high up to 1611.00. Back under 1674.00 would simply resume the decline.
Silver Jul Contract (SI, ETF: (SLV)) Sunday night’s rally above 28.75 peaked at 29.00, and had disappeared entirely by the open. The entire session only ranged around unchanged. There is no active pattern, only an attraction up to last Wednesday’s 29.30 gap up.
30-year Treasury Jun Contract (US, ETF: (TLT)) Friday’s close at 148-18 support didn’t prevent dropping Sunday night to 146-28. But it helped to recover the entire drop before Monday’s open. Despite the recovery, the intraday high stopped pessimistically short of retesting the 150-06 gap back to Friday’s open, which still suggests that sellers are weak hands.
Crude Oil Jul Contract (CL, ETF: (USO)) Sunday night’s probe above 86.00 resistance was rejected, again keeping alive potential to retest the 81.25 low. In fact, Monday’s post-close action has attacked 81.25 to within 50 cents. It remains in-play so long as 83.00 is not recovered.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL)) Despite Friday not confirming Thursday’s break lower, Monday broke lower, too. There is no active signal.
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