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Daily Spot – If, Then… Market Timing

Daily Spot

By Rod David | May 28, 2014 - 2:32 pm

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 extended Tuesday’s plunge to fulfill its first objective. Beware that its bounce in this pattern is often fueled by attracting capital from stocks.

Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
Wednesday’s fresh high testing 80.60 can’t justify much delay before extending higher if the rally’s momentum remains intact.

Eurodollar Jun Contract (EC, ETF: (FXE))
Fresh lows Wednesday attacked 1.3575 support that need not be touched for a close back above 1.3640 to suggest a bigger corrective bounce is underway.

Gold Jun Contract (GC, ETF: (GLD))
Wednesday morning’s fresh lows quickly extended to fulfill the 1256.00 target, which reacted up to attack 1260.00. Its recovery would suggest the decline wasn’t extending to its 1236.50-1244.00 targets until following a bigger corrective bounce.

Silver Jul Contract (SI, ETF: (SLV))
Losing only a few pennies Wednesday might seem to be a victory compared to Gold extending its drop, but just closing under 19.05 does introduce potential to extend down sharply if not rejected immediately Thursday.

30-year Treasury Jun Contract (US, ETF: (TLT))
The 138-04 high’s retest from its 136-12 interim dip was fulfilled Wednesday by the morning’s gap up and surge. That extended intraday to 138-22, and could extend to 139-12 so long as 1237-26 now holds as support. Back under 137-12 would signal momentum reversing back down, much more substantially.

Crude Oil Jul Contract (CL, ETF: (USO))
Wednesday’s dip to 103.13 satisfied the 61.8% projection of the prior three sessions’ Head & Shoulders pattern that developed under the rally’s104.50 target. Unless 103.60 were recovered, the pullback should extend to 102.40 where a retest of 104.50 would become likely.

Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Tuesday’s close above the 4.43 buy signal had extended already to test 4.50, and that improved Wednesday to test 4.61. That level is likely to be tested as support from this upleg’s 4.71 target before extending to fresh highs.

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Posted in Daily Spot