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 immediate recovery Wednesday left an excessively optimistic low outstanding from Tuesday. While the eventual resolution will still likely be down, the excessive optimism can breed more excessive optimism if quickly rewarded.

Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
Wednesday’s drop suffered the consequences of two lackluster reactions to the 82.15 pullback limit. Back above 82.15 and 82.40 would resume the rally targeting 82.80..

Eurodollar Jun Contract (EC, ETF: (FXE))
Wednesday’s gap up from the 1.3105 bounce limit through 1.3150 resistance eventually retraced much of the improvement above 1.3150. Back under 1.3105 would renew the decline.

Gold Jun Contract (GC, ETF: (GLD))
Although Tuesday’s drop back to prior lows at 1440.00 had held its 1451.00 bounce limit, Wednesday’s opening prints immediately filled the gap back to Monday’s 1468.00 close. Monday’s high was tested up to almost 1476.00. Rejecting Tuesday’s optimistic low so forcibly undermines the potential for extending down to 1429.50.

Silver Jul Contract (SI, ETF: (SLV))
Wednesday’s choppy sideways ranging neither exploited nor rejected Tuesday’s complete recovery of its gap down. But it did contrast again with Gold’s price action. There remains potential down to 22.95, but no active signal.

30-year Treasury Jun Contract (US, ETF: (TLT))
The pattern’s timing for extending the drop at an accelerated pace was not fulfilled through most of Wednesday. In fact, the drop was retraced somewhat to test “higher prior lows” up to 146-30. The 147-02 bounce limit remained intact, and resuming the decline targeting 144-28 still should be at an accelerated pace if valid.

Crude Oil Jun Contract (CL, ETF: (USO))
Wednesday’s fresh highs above 96.50 tried to resume the rally, next targeting 98.10. Recent overnight highs above 97.00 have yet to be recovered.

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Tuesday’s probe under 3.95-4.00 was retraced back into the 3.95-4.00 range Wednesday, but no higher, still needing to recovery 4.05 before signaling that momentum is reversing up.

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