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 Crude Oil’s bounce into the weekend didn’t leave any unfinished business below, and faced two days of illiquidity, but buyers weren’t very enthusiastic. They did neutralize an upside attraction, but gained no traction for the effort. The lows should be retested, whether to form a more durable bottom, or to extend the decline.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Fresh lows overnight disappeared before Friday’s open, but the session only ranged sideways around unchanged. Probing above Friday’s highs would target a test of 80.05-80.10 as resistance.
Eurodollar Dec Contract (EC, ETF: (FXE))
The sequence suggested not confirming Thursday’s fresh high close, and although higher highs were probed to test 1.3835 before Friday’s open, the session only ranged sideways around Thursday’s close. Almost any break under 1.3770 would be credible for launching a downleg.
Gold Dec Contract (GC, ETF: (GLD))
Friday’s gap down recovered back above 1341.00 into positive territory to confirm the rally next targeting 1360-1362.00. A delay in extending higher should hold any test of Friday’s 1339.40 opening gap as support before recovering to resume the rally, which now requires at least one more higher close.
Silver Dec Contract (SI, ETF: (SLV))
Gapping down Friday held a test of 22.50 to avoid signaling that momentum was reversing down. The gap back to Thursday’s close should attract prirce higher to resume the rally next targeting 23.35.
30-year Treasury Dec Contract (US, ETF: (TLT))
Narrow ranging still contained with the high session’s range further reflects “ineffectual optimism” that undermines any attempt to resume the rally.
Crude Oil Dec Contract (CL, ETF: (USO))
Friday’s shallow gains fulfilled expectations for bouncing further before resuming the decline. The 98.05 high even filled the gap back to Tuesday’s close, neutralizing its attraction above that might otherwise inhibit a decline. Closing back under 97.35 would signal the decline had resumed.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Despite gapping up and closing at a fresh high Friday, and despite Thursday’s test of 3.55 support, it’s tough taking buyers seriously when the decline created the requirement for at least one more fresh low close. But closing Monday above the 3.71-3.72 “higher prior lows” resistance would get every benefit of the doubt for extending higher. Otherwise, closing under 3.63 would signal the drop had resumed, targeting fresh lows.
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