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 overnight drop confirms the pattern, right down to the timing and character of triggering its sell signal. The intraday follow-through confirms, as well. Be aware that although there is no precise timing comparison, Gold’s decisive bearish action often seeps into the stock market sooner rather than later.

Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
A fresh high Tuesday wasn’t quite the breakout or confirmation needed at this stage of the pattern to confirm the recent upward momentum. But an almost immediate reversal down, or else the rejection of initially probing higher, may be the only way to avoid extending the rally through the week.

Eurodollar Jun Contract (EC, ETF: (FXE))
Tuesday’s probe under Friday’s prior low is not confirmation since Monday’s interim session firmed. But it does inform the pattern’s timing, which should now produce a rally (or try convincingly) on Wednesday, to avoid extending the drop considerably.

Gold Jun Contract (GC, ETF: (GLD))
As suspected, the chipped-away 1289.00 sell signal was broken overnight well below its 1285.00 confirmation. Tuesday’s open tested prior lows at 1274.00 and then extended down to 1265.00, targeting 1256.00 and 1236.50-1244.00 so long as 1270.00 isn’t recovered.

Silver Jul Contract (SI, ETF: (SLV))
Another drop back down to critical 19.05 support greeted Tuesday’s open. Closing any lower would target 18.60 and 18.25.

30-year Treasury Jun Contract (US, ETF: (TLT))
Relatively flat ranging Tuesday between 106-30 and 137-08 didn’t much respond to the stock market rally. Not reacting down helps to confirm the likelihood for retesting the prior high.

Crude Oil Jul Contract (CL, ETF: (USO))
The long-standing 104.50 target was tested for its third consecutive narrowly ranging session Tuesday without either triggering a reaction down or extending higher. While that doesn’t make fresh highs any less likely, it does suggest that fresh highs would be brief without a corrective pullback first.

Natural Gas Jun Contract (NG, ETF: (UNG, UNL))
The 4.43 buy signal was probed Tuesday on the way to 4.50. A second consecutive higher close Wednesday would confirm that momentum has reversed up.

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