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 Gold’s surge Wednesday comes from a not very stable base. A second consecutive higher close confirming Wednesday’s breakout would make the rally’s slope likely to be very steep. Not confirming could reverse down steeply, too.

Dollar Basket Mar Contract (DX, ETF: (UUP, UDN))
Reacting down Wednesday from having held 79.80 resistance still leaves outstanding the gap back to Friday’s 79.50 open, which should hold its test.

Eurodollar Mar Contract (EC, ETF: (FXE))
While Wednesday morning’s surge back to Friday’s high held up to produce the minimum objective of a third higher close, it was still within the range. I’m reluctant to turn bearish until sellers exploit such weak buying, or else produce a break under prior lows. Perhaps fresh highs will develop simultaneously with the Dollar Index (above) neutralizing its attraction below.

Gold Apr Contract (GC, ETF: (GLD))
Trending up overnight through 1349.00 resistance gapped up to fresh highs. A pullback from extending already above 1370.00 would be difficult to recover, so failing to produce a second consecutive higher close would undermine potential for extending to 1378.50 and 1399.00.

Silver May Contract (SI, ETF: (SLV))
Tuesday’s completion of the 20.70 pullback was rewarded by gapping up and extending higher Wednesday. A second consecutive higher close above 21.75 would signal new highs in-play.

30-year Treasury Jun Contract (US, ETF: (TLT))
Immediately following Tuesday’s close above 131-10 that neutralized selling pressure, Wednesday’s open gapped up through 131-24 to signal that buyers were retaking control. Extending higher intraday all but confirms, except that touching 132-08 resistance intraday requires a close above it.

Crude Oil Apr Contract (CL, ETF: (USO))
Dropping overnight to 98.30 extended down intraday to within 20 cents of the 97.35 target that became likely when Tuesday’s open didn’t immediately recover Monday’s dip.

Natural Gas Apr Contract (NG, ETF: (UNG, UNL))
The ongoing consolidation didn’t break higher again, but this time actually broke lower. The consolidation’s longevity suggests that the break lower will fail, and reverse back into the range. Back above 4.65 would still trigger a breakout.

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