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 pattern indicated Tuesday that it was preparing to trend sharply. Failing to confirm Thursday’s break higher with a second consecutive higher close Friday would mean the trend’s direction would be down. Friday’s substantial drop would seem to confirm that.

Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
Friday’s bounce ended the day testing 83.40 as support. Its recovery would prevent the pullback from extending down to 82.15.

Eurodollar Jun Contract (EC, ETF: (FXE))
Friday’s drop held 1.2955 as support, maintaining momentum to the bounce’s 1.3110 target.

Gold Aug Contract (GC, ETF: (GLD))
Despite extending Thursday’s rally overnight to test 1421.00, Friday’s steep drop eventually tested 1390.00 as support. Bounces should now hold 1398.50 to maintain that Thursday’s rally stretched the rubber band for a much more substantial snap back down initially targeting 1350.00-1351.00, on the way to new lows under 1290.00.

Silver Jul Contract (SI, ETF: (SLV))
Friday’s open gapped down to the 22.35 sell signal and tested 22.10 intraday. Unfinished business below at 21.80 remains in-play.

30-year Treasury Jun Contract (US, ETF: (TLT))
Probing above the corrective bounce to 142-00 stopped short of fulfilling its 142-24 potential before reversing down sharply Friday to 140-04, within a half-point of the week’s 139-29 low. The afternoon’s flight-to-safety triggered a bounce to 141-06 resistance.

Crude Oil Jul Contract (CL, ETF: (USO))
Friday’s gap down was also biased downward, but remained within Thursday’s range to form an “inside day.” Sellers expended energy throughout the day, produced a new low close, but gained no traction for the effort. It’s not a buy signal, but it adds instant credibility to any initial buying pressure Monday back above Friday’s 93.25 high.

Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Lower lows into the weekend testing 4.00 must be recovered back above 4.11 to begin signaling that momentum is reversing up.

[/pay]

Share your questions and comments on this post in the blog, or in the chartroom…