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 My comment about currencies wasn’t a brief statement, but it was an understatement: “almost any strength Friday was likely to trigger a steep and substantial surge into Monday’s open.” Eurozone news overnight triggered an attack on the prior week’s lows.Most interesting, is that these are only corrective legs.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) The “buyers are tired” setup proved out Friday in stunning fashion. News of Europe being saved sent the Dollar tumbling under 82.75 to trend down sharply. 82.00. Avoiding a second consecutive lower close would suggests a corrective dip had ended.
Eurodollar Sep Contract (EC, ETF: (FXE)) Europe’s overnight news triggered a surge through the 1.2470 signal to trend up sharply. 1.2640. The rally remains intact so long as 1.2645 holds as support.
Gold Aug Contract (GC, ETF: (GLD)) Friday was unlikely to confirm Thursday’s second fresh low close of the week at 1551.00, since Tuesday’s break wasn’t confirmed Wednesday. Another understatement for the day. An overnight rally triggered a gap up above Thursday’s high to 1584.00 and through Wednesday and Thursday’s highs, extending higher to 1608.00. The rally can persist so long as 1594.00 were to hold as support.
Silver Sep Contract (SI, ETF: (SLV)) The 26.45 buy signal was recovered easily overnight to test 27.50 up to 27.84. There is a lot of resistance above, but one more higher close would confirm a test of 30.00-30.35 underway.
30-year Treasury Sep Contract (US, ETF: (TLT)) Having rallied Thursday prior to refueling buyers with a fresh low, the rally effort could not afford to hesitate. It did. The 149-18 sell signal triggered a plunge to 147-24, under 148-00 whose test first would have made Thursday’s rally durable. Noiw a close above 148-18 would trigger a retest of 149-24 and higher.
Crude Oil Aug Contract (CL, ETF: (USO)) The recovery wasted no time appearing after Thursday’s new low closed finally fulfilled the decline’s unfinished business below. A slightly lower low under 76.00 was possible, but not required. Europe’s news made it impossible. Friday’s 84.20 high can now absorb pullbacks down to 82.50, needing a break above 85.50 to signal a new rally leg underway. A downleg would be signaled under 81.60.
Natural Gas Aug Contract (NG, ETF: (UNG, UNL)) Another intraday bounce Friday attacked the rally’s 2.83 target. It can be tested up to 2.88 without resuming the rally — and probably wouldn’t on its first test.
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