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 The three-day weekend didn’t interfere with Friday’s trending attempts. But Tuesday’s extensions were not maintained. Crude Oil may be the only pre-weekend trend capable of resuming, because its ultimate reaction down Tuesday was a little too aggressive.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Tuesday’s weakness barely attacked Friday’s low, which was a reaction to Bernanke’s comments. This performance relative compared to the Euro suggest that a turning point is still forming.
Eurodollar Sep Contract (EC, ETF: (FXE)) Tuesday’s high attacked Friday’s Bernanke highs, again probing prior highs intraday but failing again to close above them. This is distributive action, and filling gaps outstanding below at 1.2500-1.2515 may accelerate a reaction down into a bigger drop.
Gold Dec Contract (GC, ETF: (GLD)) Tuesday’s high fulfilled the 1700.00 target, and held it. Pullbacks have room all the way down to 1673.50 without reversing momentum down or invalidating potential for extending up to 1744.00. That’s a lot of room, especially with the Euro’s current challenges to extending higher.
Silver Sep Contract (SI, ETF: (SLV)) Friday’s break above 31.00 that put into play the 33.00 target extended higher Tuesday to 32.44. There is room for noise down to 31.80, and room for a pullback down to 31.30 without reversing momentum down.
30-year Treasury Sep Contract (US, ETF: (TLT)) Fresh highs overnight held a test of 150-26 to allow a pullback or reversal to begin. But a close back under “lower prior highs” like 149-18 is needed before offering any compelling risk:reward ratio.
Crude Oil Oct Contract (CL, ETF: (USO)) An overnight probe above 97.00 resistance was rejected to avoid confirming a new rally leg underway. A session that contains a fresh high cannot also signal the trend reversing down. So, probing under the 96.15 pullback limit down to 94.97 expended a lot of selling pressure without sellers gaining traction for their effort. Back above 96.50 should trigger a new and durable upleg. Closing under 94.80-94.85 would signal at least a deeper pullback underway.
Natural Gas Oct Contract (NG, ETF: (UNG, UNL)) The 2.89 bounce target was tested almost immediately Tuesday. The balance of the session ranged narrowly, which allow the the bounce to extend higher so long as 2.78-2.82 now holds as support.
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