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 new low in reaction to Friday’s Employment Situation report was still too shallow and too brief to qualify as a bottom. A lot of buying pressure is being expended to prevent the inevitable. I wonder whether any buying pressure will be available to recover from it.

Dollar Basket
Mar Contract (DX, ETF: (UUP, UDN))
Friday’s reaction to the Employment Situation report surged above prior highs to 82.95. Back under 82.37 and 82.25 would again signal momentum reversing down. Otherwise, a second consecutive higher close Monday would extend the rally considerably.

Eurodollar
Mar Contract (EC, ETF: (FXE))
The problem with Thursday’s buy signal became evident immediately following Friday’s Employment Situation report. Having formed an Ascending Triangle but not yet triggering it, the pattern was vulnerable to spiking down. It did. Prior lows were tested down to 1.2955, but have held, so far, with the original parameters still valid for triggering a recovery.

Gold
Apr Contract (GC, ETF: (GLD))
Despite having probed above 1584.00 Thursday, the reaction to Friday’s Employment Situation report plunged to a new low at 1560.40. That’s still not deep enough to satisfy the pattern, despite what the recovery’s attack on 1584.00 would like us to believe. Anyway, the session resolved back down to end the day testing 1575.00, so buyers gained no traction, and neither did sellers.

Silver
Mar Contract (SI, ETF: (SLV))
The outstanding requirement to probe prior lows was fulfilled at 28.33 in reaction to Friday’s Employment Situation report. Closing back above 28.65 was needed to confirm that sellers gained no traction, which did hold a pullback from 29.30. Closing above 29.10 is still needed to launch a new upleg.

30-year Treasury
Jun Contract (US, ETF: (TLT))
Trending down aggressively for 3-4 consecutive sessions had stretched the rubber band a little too far to be assured of even a knee-jerk reaction up to the Friday’s Employment Situation report. There had become risk of extending the leg down sharply. In fact, the reaction plunged to within 6 ticks of the outstanding 140-08 target, which remains in-play on this leg so long as bounces now hold 141-14.

Crude Oil
Apr Contract (CL, ETF: (USO))
Overnight weakness was retraced, albeit not aggressively, to try producing a second consecutive recovery close. Afternoon strength extended to fresh highs well above Thursday’s test of 91.45 to confirm momentum had reversed back up.

Natural Gas
Mar Contract (NG, ETF: (UNG, UNL))
Fresh highs Friday up to 3.63 avoided triggering the 3.53 sell signal targeting 3.30-3.33.

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