Daily Spot
A daily summary of high-profile members of several complexes…[pay] View a more detailed discussion of each chart at the end of today’s Market Wrap.
Today’s Highlight Did Natural Gas just form a bottom? Neutralized a gap below, recovered a gap up, closed above resistance. Even if confirmed, beware the weather forecast…
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Gapping down Tuesday was recovered to 80.20 resistance before consolidating narrowly into the close. A second consecutive higher close would signal a much bigger rally leg underway.
Eurodollar Mar Contract (EC, ETF: (FXE))
Tuesday’s opening bounce peaked short of even attacking Friday’s Island before reversing back down to Monday’s low. Closing any lower Wednesday would signal momentum was reversing down already. There is otherwise still potential to retest Friday’s high.
Gold Apr Contract (GC, ETF: (GLD))
Monday’s test of the 1349.00 target had developed too quickly to be durable. While Tuesday’s reaction down to 1331.00 is similarly difficult to extend without correction. But Tuesday’s reaction down does get the benefit of the doubt, that any bounce is a temporary correction before signaling a bigger downleg underway.
Silver May Contract (SI, ETF: (SLV))
Monday’s bounce to 21.75 resistance reacted down further Tuesday, targeting 20.70.
30-year Treasury Jun Contract (US, ETF: (TLT))
Gapping down from Monday’s probe of prior highs has formed an Island Reversal pattern. Rather than bounce back to Monday’s open from testing 133-04 support, the session extended down further to 132-16. Back above 133-04 would trigger at least a retest of Monday’s 133-28 high.
Crude Oil Apr Contract (CL, ETF: (USO))
Tuesday’s gap down to 104.00 extended lower to attack 102.90 “lower prior highs” as support. A second consecutive lower close would signal a new downleg is underway. There is otherwise no requirement to extend the rally any higher.
Natural Gas Apr Contract (NG, ETF: (UNG, UNL))
Gapping up Tuesday from having filled the gap below on Monday did not prevent a post-open dip attacking Monday’s low. But the dip was recovered back to the open’s high, suggesting a bottom is in and a new upleg should be obvious by Wednesday’s close.
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