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 Tapering, Bernanke and Minutes — in other words, all things FOMC — created great swaths of volatility Wednesday. No matter how wide, it was not arbitrary, as relevant price levels continue influencing intraday price action. Most notable is that the long bond’s new low bounced from touching its target, but not high enough to reverse momentum up.

Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
Wednesday’s dip to 83.50 was recovered back to the recent 84.50 high, but not through it, not enough to trigger the 84.45 buy signal without probing higher Thursday.

Eurodollar Jun Contract (EC, ETF: (FXE))
Wednesday morning’s bounce up to 1.2955 resistance was exceeded all the way up to 1.3000, but only momentarily, before reversing down sharply on the day to 1.2840. The 1.2745 target is in-play, especially if confirmed by a second consecutive lower close Thursday.

Gold Aug Contract (GC, ETF: (GLD))
Tuesday’s lows tested what had been Monday morning’s 1357.70 bounce limit. Wednesday’s recovery probed 1400.00 resistance, and failed from 1414.00. The reaction down probed 1357.70, whose break would now target 1344.00 and then new lows.

Silver Jul Contract (SI, ETF: (SLV))
Another test of the 23.25 buy signal failed again Wednesday. The unfinished business below at Monday’s gap down does undermine any near-term recovery attempts.

30-year Treasury Jun Contract (US, ETF: (TLT))
Another test of the 144-24 buy signal failed again Wednesday, producing a drop to new lows at the 142-19 target. Its bounce to 143-10 stopped short of reversing momentum up, which would be triggered by closing back above 143-30.

Crude Oil Jul Contract (CL, ETF: (USO))
Rather than accelerate higher above 96.00, it was probed below again, putting into play an attack on 94.00 that was fulfilled intraday by testing 94.20. An actual touch of 94.00 should be avoided to allow a credible rally effort Thursday morning..

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
Wednesday’s narrow range consolidated Tuesday’s recovery above 4.16. But the rally cannot tolerate much more delay in extending higher.

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