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 long bond had indeed ended a corrective bounce Thursday, plunging to new relative lows at Friday’s open, and extending lower. The intraday lows held a test of the decline’s target, so the decline must close lower Monday to avoid bottoming.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
Fulfilling the bounce’s 82.80 target did not slow the rally, which gapped up Friday and extended higher to test 83.50. Now the rally’s momentum remains intact so long as 82.70 were to hold as support.
Eurodollar Jun Contract (EC, ETF: (FXE))
Thursday’s plunge to 1.3015 extended down Friday to test 1.2940. The decline next targets 1.2865 so long as 1.3105 is not recovered.
Gold Jun Contract (GC, ETF: (GLD))
As suspected, the break under 1463.50 to resume the decline targeting 1429.50 would likely happen overnight, and slice through interim support. Thursday night’s $40 plunge was testing 1429.50 at Friday’s open, before extending to 1418.50 intraday. A surge recovered to close back above 1429.50. Friday’s lows can still be retested down to 1400.00, a test that would probably hold, unless Monday were to close back above 1452.00..
Silver Jul Contract (SI, ETF: (SLV))
Gapping down to 23.25 and consolidating down to 23.15 never extended lower to the 22.95 pullback target. An afternoon surge recovered to Wednesday’s higher prior lows at 23.65. Only gapping up above 24.00 could signal that fresh lows aren’t still in-play.
30-year Treasury Jun Contract (US, ETF: (TLT))
Friday’s plunge compensated for the delay from Thursday’s test of the 147-02 bounce limit up to 147-12. Friday’s open gapped down under all prior lows before extending down sharply to 144-17. The 144-28 target was recovered through the close. A bounce should hold a test of 145-20 if the decline intends to extend to 143-00.
Crude Oil Jun Contract (CL, ETF: (USO))
Thursday’s gap down under 96.00 had undermined the rally. Friday’s open gapped down to 94.75 and extended lower to 93.37. An afternoon rally attacked 96.00 to within 50 cents, which is not a buy signal, but does keep alive the rally’s potential.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Friday’s dip back down to 3.91 rejected Thursday’s bounce back up to 4.00, but 4.05 still must be recovered before signaling that momentum is reversing up.
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