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 early strength Friday was rejected. So was its renewed strength later in the session. That’s not enough to prevent a deep pullback, but the interest at higher levels does suggest that a new rally leg will emerge from the pullback.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
Yen strength influenced the Dollar Index’s return to Thursday’s low. Resuming the decline would have little tolerance for more than the briefest bounce.
Eurodollar Jun Contract (EC, ETF: (FXE))
Friday’s narrow ranging ignored Yen volatility and firmed only slightly. Any recovery still relies largely on avoiding any new selling pressure, or at least quickly rejecting and reversing from any blip-down.
Gold Jun Contract (GC, ETF: (GLD))
Friday’s early attempt to extend further above the rally’s 1456.00 target tested 1484.00. The morning’s reaction down attacked 1456.00 before rallying again, attacking the morning’s 1484.00 high. Recovering significantly all of the significant rally’s significant reaction down did not prevent a more significant reaction down back under 1456.00 (amid rumors of a large margin call). But the pullback will get a benefit of the doubt for being able to recover to fresh highs.
Silver May Contract (SI, ETF: (SLV))
The bounce’s minimum 24.15 target was probed Thursday, but held as resistance through the close. Thursday night’s probe above it to 24.80 and Friday’s intraday test of 24.50 both fell back under 24.15. A deeper dip has potential to 23.25 so long as bounces now hold 24.20.
30-year Treasury Jun Contract (US, ETF: (TLT))
Thursday’s shallow dip testing the 147-26 sell signal seemed relatively strong considering the environment, and suggested the 149-14 target remains in-play. Friday’s gap up and intraday extension to test prior highs above 149-00 further suggests that higher highs are likely. It would also allows a higher sell signal to be calculated.
Crude Oil Jun Contract (CL, ETF: (USO))
Overnight weakness following Thursday’s test of the rally’s 93.55-93.75 target extended lower into Friday morning to test 92.00. Enough of the 92.95 pullback limit was recovered to expect another dip will also recover, but not yet to extend the rally.
Natural Gas May Contract (NG, ETF: (UNG, UNL))
Thursday’s probe of fresh pullback lows would have allowed initial strength Friday to gain traction, but Friday’s open fell. And not a little. But it was recovered enough to keep open the same bullish setup, for initial strength Monday to gain traction.
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