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 Big opening gaps that originated from neutral postures were likely not to extend, and likely to reverse, which they did. In big ways. Ignoring directional cues for a moment, just recognizing the widespread elasticity is exciting.

Dollar Basket Jun Contract (DX, ETF: (UUP, UDN))
A knee-jerk reaction to BOE and ECB moves was likely to reverse, and Thursday’s gap up did reverse — not only back down to Wednesday’s close, but also back under the week’s lows, and then filling the gap back to last Friday’s close (which was lower). That’s a lot of energy to expend in a single session, but beware of extending down further without delay, which currencies are unique in tending to do.

Eurodollar Jun Contract (EC, ETF: (FXE))
A knee-jerk reaction to BOE and ECB moves was likely to reverse, and Thursday’s gap down did reverse back upto Wednesday’s close. That level equated essentially to last Friday’s close, which was being probed as resistance. That’s a lot of energy to expend so quickly, but that doesn’t prevent extending higher — so long as the pattern extends higher without delay.

Gold Aug Contract (GC, ETF: (GLD))
Thursday’s gap up from testing 1241.00-1244.00 spent the session hovering just under the 1256.00 level that was the decline’s first target. It wasn’t really probed intraday, so holding its close doesn’t necessarily suggest that buyers are done. But the gap back to Wednesday’s close will need to be filled at some point regardless of the resolution.

Silver Jul Contract (SI, ETF: (SLV))
Gapping up Thursday left behind an Ascending Triangle whose low is likely to be retested to form a more durable bottom.

30-year Treasury Sep Contract (US, ETF: (TLT))
An attempt to extend down further Thursday ahead of Friday’s Employment Situation report was reversed into positive territory. No specific reaction is likelier than another, and the recent drop does allow room for a bigger corrective bounce, but the pattern is not bullish ultimately.

Crude Oil Jul Contract (CL, ETF: (USO))
Having reversed so much gain Wednesday back into negative territory, the optimism of narrowly avoiding a touch of 102.40 support — let alone probing it — suggested the next move could be sharply lower. Thursday’s open did gap down sharply, but it was recovered to test 102.40 and 102.65 resistance, both of which held to suggest a bigger decline is underway.

Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Thursday’s gap up didn’t prevent a deeply negative reaction to EIA. It touched an uptrending support that I pointed out in the Chartroom should be supportive, and its test was recovered to fresh highs. The 4.71 minimum objective remains in-play.

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