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’s recovery fulfilled a significant objective Tuesday by closing above prior highs. That’s not equivalent to fulfilling a target. The objective helps to confirm that a durable rally is underway, and not a corrective bounce.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Monday’s failed attack on the 82.80 buy signal was further punished Tuesday by sliding sharply to 81.80. Any lower would all but require probing under 81.40 before the next credible recovery attempt.
Eurodollar Sep Contract (EC, ETF: (FXE)) Monday’s recovery from dipping under its critical 1.2300 support was rewarded overnight by recovering 1.2380 to suggest a bigger corrective bounce underway. In fact, 1.2492 was tested Tuesday morning, and 1.2570 could be tested so long as 1.2405 were to hold as support.
Gold Dec Contract (GC, ETF: (GLD)) Recovering Monday’s early test of its 1613.00 pullback limit to close at fresh highs was extended sharply higher Tuesday to 1643.60. The first probe above prior highs coincided with testing a two-month old Pivotal High that must extend higher Wednesday to avoid several days of correction.
Silver Sep Contract (SI, ETF: (SLV)) Monday’s close above 28.00-28.15 extended sharply higher Tuesday to 29.50. The 30.00-30.35 target remains intact so long as pullbacks now hold 28.95.
30-year Treasury Sep Contract (US, ETF: (TLT)) The 146-25 bounce limit wasn’t even attacked by firming after Monday’s close. Tuesday open gapped down, expending a lot of selling pressure, without the bounce limit yet refueling sellers. An early retest of last week’s 145-04 low produced a bounce that closed back in positive territory, just 1-2 ticks short of signaling a bigger bounce targeting 147-00.
Crude Oil Sep Contract (CL, ETF: (USO)) Despite gapping up to new highs Tuesday that attacked 96.00, the balance of the session slid. Despite the balance of the session sliding, Tuesday’s close was still positive. The intraday dip refueled buyers to maintain the 98.85 target.
Natural Gas Sep Contract (NG, ETF: (UNG, UNL)) Tuesday’s early probe into 2.80-2.85 resistance was rejected by a relatively steep drop back down to . It was also a brief drop, and was recovered back up into the 2.80-2.85 area. The close was under 2.80-2.85, but now any probe above 2.85 would be credible for extending sharply higher intraday.
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