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 Copper is not a precious metal, but Gold (and Silver’s) performance is still interesting while the more industrial metal continues plunging on shrinking global demand fears. Copper seems closer to a near-term bottom in terms of timing, so its renewed attractiveness might put pressure on Gold. Silver is less industrial than Copper, but more so than Gold, so its intraday recovery from fulfilling a target could be suggesting as much.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Holding 79.80 resistance Tuesday continues to inhibit a recovery from forming before filling the gap back down to Friday’s 79.50 open.
Eurodollar Mar Contract (EC, ETF: (FXE))
Flat-to-lower ranging reinforces the suggestion made by Monday’s flat-to-higher ranging, that the two prior days’ breakout and confirmation will nevertheless deeper require a pullback (e.g. 1.3800) before fulfilling their minimum objective of at least one more fresh high close.
Gold Apr Contract (GC, ETF: (GLD))
Gapping up to test 1349.00 resistance by a couple of bucks was reversed deeply back into the range testing 1338.00. Closing under 1342.00 would have been optimal for maintaining the topping pattern, but buyers did fail to produce a breakout close for their efforts. Back under 1333.00 would trigger a downleg.
Silver May Contract (SI, ETF: (SLV))
The premature bounce from coming only to within a nickel of the 20.70 objective was retraced by fresh lows Tuesday that did neutralize the attraction. Reacting back up above the two prior sessions’ lows suggests that any initial strength Wednesday would be able to extend higher intraday.
30-year Treasury Jun Contract (US, ETF: (TLT))
Tuesday’s firming probed above 131-10 resistance, suggesting that the decline has lost its traction. But a recovery above 131-24 must still signal momentum reversing up to avoid forming another distribution pattern that can break lower.
Crude Oil Apr Contract (CL, ETF: (USO))
Monday’s gap down wasn’t recovered Tuesday, and fresh lows were probed back to support, this time fully testing the 100.00 (+/- 15 cents) range down to 99.85. Almost nothing short of immediately recovering 101.85 and 102.45 Wednesday would end the decline before potentially testing 97.35.
Natural Gas Apr Contract (NG, ETF: (UNG, UNL))
More narrow ranging under 4.65 Tuesday all but ran out of time to begin rallying. The ongoing congestion is not distributive, but only a strong open Wednesday may be able to avoid probing fresh lows.
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