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 corrective bounce took on an unexpected dimension when the bounce limit was broken by a massive rally Thursday. The rush to own physical seems to be due to recent dynamics, and it has benefited from the elasticity indicated by the week’s earlier temporary dive. Extending any higher into the weekend could extend substantially higher next week, and that could not avoid having significant implications elsewhere.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Thursday’s dip stretched the rubber band to the range’s lower-end, and held. Any deeper would signal a new downleg underway. There is otherwise resistance above 80.75 whose recovery would signal a retest of recent highs.
Eurodollar Sep Contract (EC, ETF: (FXE))
Being a second consecutive higher close, Thursday’s gap up and rally to 1.3650 resistance has cleared the way for any further strength into the weekend to reverse momentum up. There is otherwise no active signal.
Gold Aug Contract (GC, ETF: (GLD))
The bounce into Thursday’s open had retraced enough of Tuesday’ drop to retest Monday’s attack on 1284.00 resistance. But that didn’t stop a substantially stronger and gargantuan sized rally from extending sharply higher to attack 1319.00. A trading range back down to 1300.50 is likely, and any lower close would signal the leg was reversing down.
Silver Jul Contract (SI, ETF: (SLV))
The recovery back to 19.82 resistance extended higher to gap up Thursday at 20.00 and extend sharply higher to 20.85. A pullback to 20.45 is likely, and only its break would signal momentum reversing down.
30-year Treasury Sep Contract (US, ETF: (TLT))
Thursday’s early bounce stopped just short of fully testing 136-10 resistance before reversing to test 135-00 down to 134-25. The dip seems a little premature since 136-18 was next in-line to be able to launch a downleg. So, I can’t give sellers a benefit of the doubt for more than just keeping the market range bound.
Crude Oil Aug Contract (CL, ETF: (USO))
An early test of 105.70 support reacted up intraday Thursday. Its reaction up avoided triggering the sell signal, so a fresh high remains possible — if not also likely — before a new downleg can begin.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Thursday morning’s bounce ahead of the EIA report was rejected back down to and then through the 4.61 pullback limit. It must be recovered without delay Friday, and then back above 4.71 would launch a substantial upleg to fresh highs.
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