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 Euro up Wednesday, while stocks were down… Not their most common relationship. Presumably, one of the two markets will react sharply back in the opposite direction, as each starts trending in tandem.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Tuesday’s narrow escape from breaking under 82.80 (82.35 basis Jun) melted away by Wednesday’s gap down under Tuesday’s lows. The session extended down, filling an outstanding gap. A second consecutive lower close under Wednesday’s low would launch a new downleg. Otherwise, there remains potential for recovering to retest 83.39.
Eurodollar Sep Contract (EC, ETF: (FXE)) Wednesday’s probe above 1.2555 filled the outstanding gap back up to 1.2600, and held. Back under 1.2555 Thursday would signal the bounce had been absorbed, and probably finally launching a retest of 1.2325. Otherwise, a second consecutive higher close Thursday would launch a new rally leg.
Gold Aug Contract (GC, ETF: (GLD)) An overnight dip to 1607.00 was recovered through Wednesday’s open and extended to a fresh high at 1626.00. Ultimately, the session’s positive close maintained potential for retesting last week’s highs up to 1644.00. But now 1608.00 must hold as support to prevent sellers from regaining traction.
Silver Jul Contract (SI, ETF: (SLV)) Wednesday’s narrow choppy range around 29.00 held 28.75 support to maintain potential for firming further up to 29.30 and to 30.30-30.35.
30-year Treasury Sep Contract (US, ETF: (TLT)) Wide ranging around 148-18 continued Wednesday. But despite gapping down below it to test 147-19, the balance of the session rallied to fill the gap back to 149-16. The next higher objective also expected to attract price is 150-06, which is now in-play so long as 149-06 holds as support.
Crude Oil Jul Contract (CL, ETF: (USO)) Gapping down Wednesday to test 82.15 stopped short of fulfilling the long-awaited retest of 81.25. So, the intraday recovery held 84.00 resistance, and reversed to close negative, maintaining the drop’s momentum.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL)) Despite a second consecutive new low having avoided confirmation again, Wednesday’s open gapped down and the entire session ranged essentially in negative territory. But it didn’t extend down, which is another version of the same tired selling that has characterized the drop. Closing above 2.32 would still be bullish.
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