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 extended drop Friday answered the question whether a one-day drop was sufficient to neutralize the selling pressure of the two-day consolidation that had preceded Thursday’s drop. The answer was, “no.” Is two days sufficient?

Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Two consecutive tests of the 81.45 pullback limit needed to rally immediately Friday to avoid extending into another downleg. Friday’s gap up was retraced enough to fill the gap back to Thursday’s close, and then recovered back to the open’s highs. The balance of the session drifted back down to 81.45. The action isn’t definitive for reversing momentum up, but at least it confirms this level’s relevance, and the diminishing selling pressure.

Eurodollar Sep Contract (EC, ETF: (FXE))
Friday’s reaction down from recently attacking the 1.3333 bounce limit did not extend, but it did signal that resuming the rally would require new sponsorship.

Gold Dec Contract (GC, ETF: (GLD))
The drop extended to test 1304.50, testing August’s original buy signal. Closing back above 1321.00 would trigger a bounce targeting 1341.00. Extending any lower would target 1288.00.

Silver Dec Contract (SI, ETF: (SLV))
Friday’s fresh lows down to 21.42 were recovered back up to 21.70. Closing under 22.00 suggested the decline was extending, with potential into the teens. But, for now, at least one more lower close is likely.

30-year Treasury Dec Contract (US, ETF: (TLT))
Thursday night’s probe under 129-14 was already recovered by Friday’s open, and the recovery extended intraday to retest 130-00 resistance. Closing almost any higher could trigger a rally well into the week.

Crude Oil Oct Contract (CL, ETF: (USO))
Friday’s drop back to 107.25 was appropriate for having fulfilled the 108.75 bounce objective Thursday without putting into play any higher objective. The lowest new buy signal is now 108.75, although it would be suspicious to trigger Monday.

Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
An opening dip Friday was recovered and reversed into positive territory, testing a fresh high at 3.69. Fresh highs on a Friday in this market tend to extend at the week’s start. Not extending higher Monday would be bearish.

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