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 Gold and the Euro each reacted up sharply Friday from targets that were met at Thursday’s lows. Despite having expended so much energy so quickly — actually, because of it — their recoveries cannot afford to hesitate extending higher or else sellers may regain traction.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Thursday’s fresh high had failed to extend beyond the open. Friday’s brief opening blip-up reacted differently, by plunging back under the prior week’s highs. Closing under 83.35 would reverse momentum down, targeting 81.85.
Eurodollar Sep Contract (EC, ETF: (FXE)) An opening blip-down retested the 1.2180 target that had contained Thursday’s sellers. Its reaction up surged steeply back to 1.2265, testing two prior sessions’ lows. Pullbacks to only 1.2210 can still be absorbed to continue forming a bottom, which would be sealed back above 1.2270.
Gold Aug Contract (GC, ETF: (GLD)) Although Thursday’s $20 bounce from testing its 1555.00 target still ended the day in negative territory, the recovery extended sharply higher Friday to 1596.50. The rally may extend higher to test 1611.00, but back under 1582.00 would trigger another downleg — this time targeting new lows at 1543.00or 1532.00.
Silver Sep Contract (SI, ETF: (SLV)) Thursday’s recovery back into positive territory probed higher highs Friday. The bounce could still extend up to 27.75 without yet signaling a new rally leg underway.
30-year Treasury Sep Contract (US, ETF: (TLT)) The week-long extended controlled uptrend met its first challenge Friday on surging stocks. The reaction down was more abrupt than the rally, but not of any greater degree being less than 1 point. The close might not have cleanly recovered 151-00
Crude Oil Aug Contract (CL, ETF: (USO)) Friday’s fresh recovery highs probed above 86.50, and filled the week-old gap back to 87.00. Opening Monday above 87.75 would be the next available confirmation that the rally has resumed. Closing under 85.50 would all but require testing 82.50, and potentially 78.00.
Natural Gas Aug Contract (NG, ETF: (UNG, UNL)) Not closing Thursday above 2.89, despite probing above it intraday, prevented Friday from extending higher. In fact, 2.89 held as resistance Friday. Its break Monday would still be credible for resuming the rally, next targeting 3.15.
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