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 Tuesday failed its early attempts to undo Monday’s efforts. This was especially true with Crude Oil’s bounce back to its bounce limit, which was retraced back down to Monday’s low.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Tuesday’s initial weakness extended to fill the gap back down to Friday’s 79.40 close. Its support held, allowing an afternoon bounce that retraced 61.8% of the drop from recent highs.
Eurodollar Dec Contract (EC, ETF: (FXE)) Tuesday’s initial strength did not extend very far. And it was finally retraced into negative territory late in the day. But Tuesday’s extra gain up to 1.2983 allowed the reaction down to 1.2930 to hold a 61.8% retracement back to Monday’s 1.2902 low. Any immediate strength Wednesday would again be credible for extending higher.
Gold Dec Contract (GC, ETF: (GLD)) Monday’s extension down from Friday’s peak $32 higher may have ended the drop faster than it was signaled. But that required immediately resuming the rally effort to validate Friday’s highs. Tuesday’s opening attempt was retraced back to unchanged, keeping alive the potential recovery, but still not allowing any dip into negative territory.
Silver Dec Contract (SI, ETF: (SLV)) Apparently Monday did expend more selling pressure than could be expended so quickly. Tuesday’s open gapped up above Monday’s high. But a reversal dipped back into negative territory, threatening to close lower and confirm a new downleg was underway. Otherwise, back above 34.55 would trigger one final upleg targeting 35.40.
30-year Treasury Dec Contract (US, ETF: (TLT)) Despite retracing Tuesday’s gap up back into negative territory, the afternoon recovered to fresh highs at 148-13. This does not change the 147-04 sell signal, but back under 147-09 would offer an early warning that the sell signal should at least be probed.
Crude Oil Nov Contract (CL, ETF: (USO)) Tuesday’s gap up tested the 93.00 bounce limit, but subsequent weakness held it, and kept in-play the next lower targets at 89.75 and 87.00.
Natural Gas Oct Contract (NG, ETF: (UNG, UNL)) Fresh highs tested 2.90 Tuesday for the first time in a week. Its recovery would resume the rally next targeting 3.25.
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