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 extended higher immediately Monday, after first gapping down. Gold underperformed by failing to recover positive territory, suggesting that the Euro’s bounce will be only a temporary correction.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Despite Monday’s open gapping up, the morning’s exit was probing under 83.35 support, putting into play 81.85 so long as a negative close is repeated Tuesday.
Eurodollar Sep Contract (EC, ETF: (FXE)) Monday’s early dip held another test of 1.2180 support. All post-open price action trended up to fulfill the bullish requirement for there being no delay in resuming Friday morning’s recovery. In fact, the morning’s recovery extended into positive territory above Friday’s highs. At least 1.2395 should be tested on this leg.
Gold Aug Contract (GC, ETF: (GLD)) Friday’s bounce from last week’s 1555.00 target was not resumed immediately at Monday’s open, which gapped down. But the open’s gap down did hold its test of 1582.00 to prevent sellers from gaining traction, by recovering almost immediately back up to Friday’s close. Any potential for extending the rally still depends upon all intraday action being obviously biased-upward — almost no pullback can be tolerated by the pattern at this stage.
Silver Sep Contract (SI, ETF: (SLV)) Friday’s bounce did not extend any higher Monday, but the open’s retracement of Friday’s gains was recovered almost entirely. Since the bounce still had room up to 27.75 before failing, and since the intraday recovery hesitated pessimistically before filling the gap back to Friday’s close, there remains potential for extending higher on a close above 27.75.
30-year Treasury Sep Contract (US, ETF: (TLT)) Friday’s dip was not so abrupt as to suggest it was sponsored by strong-handed sellers, and it held 151-00 support, leaving the 153-04 target intact. Monday’s open gapped up and extended to fresh highs at 152-10. Pullbacks now have room down to 151-19 without jeopardizing the rally’s momentum.
Crude Oil Aug Contract (CL, ETF: (USO)) Monday’s flat open then firmed intraday to test the previous highs at 88.00. The afternoon probed fresh highs that should extend higher to 91.00 so long as 87.62 now holds as support.
Natural Gas Aug Contract (NG, ETF: (UNG, UNL)) Holding 2.89 resistance Friday once again kept the following session (i.e. Monday) from extending higher. No other parameter is active.
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