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 Crude Oil’s gap down Friday had to be dramatic to break the rally’s momentum already in-play. Rejecting Friday’s tumble immediately by resuming the rally Monday would be that much more credible. Otherwise, a retest of recent lows could soon be apparent.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Friday’s 83.50 high stopped short of retesting June’s 1’s 83.76 opening gap. Its test remains in-play so long as 83.35 holds as support.
Eurodollar Sep Contract (EC, ETF: (FXE)) Friday’s follow-through to Thursday’s resumption of the decline fulfilled the long-awaited retest of Jun 1’s opening gap 1.234 under its 1.2292 intraday low down to 1.2271. The next lower objective is under 1.2180.
Gold Aug Contract (GC, ETF: (GLD)) Thursday’s test of 1598.00 did not produce a recovery above 1613.00, leaving Friday’s session free to extend the decline. The open slid immediately to test the pivotal 1584.00, which ultimately broke lower in the afternoon. Its recovery Monday would rob sellers of their traction, but reversal otherwise remains intact and targeting 1550.00.
Silver Sep Contract (SI, ETF: (SLV)) Despite having held 27.75 through Thursday’s close, Friday’s open slid sharply and extended lower to test 27.00. Now, recovering 27.50 would trigger a rally. Otherwise, at least a retest of 26.15-26.20 is underway.
30-year Treasury Sep Contract (US, ETF: (TLT)) Thursday’s recovery was still testing 149-00 instead of recovering it to trigger a bigger rally underway. Friday’s open surged through it, and through its 149-18 to retest the 150-00 resistance that had contained Monday’s rally. So long as 149-18 holds as support, the rally is already signaled. But closing above 150-06 Monday would offer very helpful confirmation.
Crude Oil Aug Contract (CL, ETF: (USO)) Thursday’s narrow range was not in itself bearish. But that didn’t prevent Friday’s open from gapping down to trade the day ranging narrowly at 84.25-84.75. Closing above 86.50 would signal the rally had resumed. Closing under 83.35 would target at least 80.00, if not also 78.20.
Natural Gas Aug Contract (NG, ETF: (UNG, UNL)) Fresh highs up to 3.06 Friday morning reacted down sharply to test the 2.83 pullback limit. It was still being tested Friday afternoon. Back above 2.89 would signal the rally had resumed. There is otherwise room down to 2.76 before signaling at least a much bigger pullback underway.
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