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’s test of major support Monday was made painfully obvious to Tuesday morning’s sellers, who were squeezed 2 points off the low and well back into positive territory.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
The attraction below at 81.33 was fulfilled Tuesday morning. But not very constructively. The open’s gap down was shallower, and didn’t extend down until after filling the gap back to Monday’s 81.65 close. That neutralized its attraction above, and last week’s 81.00 lows should still be probed.
Eurodollar Jun Contract (EC, ETF: (FXE))
Tuesday’s retest of last week’s ~1.3305 high still stopped short of testing the 1.3333 objective.
Gold Aug Contract (GC, ETF: (GLD))
An overnight plunge to new lows extended lower Tuesday to test 1365.00. Friday’s 1377.00 “higher prior low” was tested as resistance. Recovering it through two consecutive closes would rob this downleg of its momentum. Meanwhile, at least 1351.00 remains in-play.
Silver Jul Contract (SI, ETF: (SLV))
Two days of ranging around the drop’s 21.80 target allowed the drop’s momentum to remain intact. Tuesday’s gap down extended to 21.40 and bounced back up to Friday’s 21.65 “higher prior lows.” Closing lower again Wednesday would confirm 20.20 is in-play.
30-year Treasury Sep Contract (US, ETF: (TLT))
Monday’s gap down that was spent exclusively in negative territory could not prevent a new low Tuesday targeting 137-30 or 137-18. But it made a new low likely to recover into positive territory. Tuesday’s pre-open dip to 137-25 reacted back up 2 points through Monday’s 138-27 close to 139-22. This is another opportunity to begin bottoming, but Tuesday’s 138-05 opening gap will need to be retested, and held.
Crude Oil Jul Contract (CL, ETF: (USO))
Monday’s pullback extended down Tuesday well under the 95.65 pullback limit to test 94.30 support. The reaction up from there was held back at 95.00 until a late surge through it. Extending back above 95.65 would resume the rally next targeting 98.10.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Tuesday’s fresh low did what Friday could not, producing a second consecutive lower close. This all but requires testing at least 3.55-3.60 before any bottoming potential.
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