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 Despite thinner pre-holiday volume — if not, because of it — the week opened with a spike in volatility and trending effort. And the patterns don’t necessarily risk being false breaks. So, this should be an interesting week.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Finally, currencies began trending sharply out of or within their recent ranges, sending the Dollar index to a fresh low at 79.75-79.80. The trend remains down with potential to 79.40 so long as 80.15-80.25 hold as resistance.
Eurodollar Sep Contract (EC, ETF: (FXE))
Monday’s surge is a little overdue, but still in the right direction and without any contrary price action in the interim. The next higher objective at 1.3810 is in-play so long as pullbacks hold 1.3655.
Gold Aug Contract (GC, ETF: (GLD))
Monday’s gap down to 1313.00 support bounced back to the range’s upper-end at 1322.00, and then extended sharply higher post-close to 1329.00. The breakout has yet to be done intraday, let alone confirmed by a second consecutive higher close Wednesday, and meanwhile remains vulnerable to rejection. Confirmation would target 1349.80.
Silver Sep Contract (SI, ETF: (SLV))
Monday’s gap down held the 20.85 sleeper low and bounced back to 21.05 resistance. Closing any higher would have potential to 22.60 if confirmed by a second consecutive higher close. A single higher close would be vulnerable to rejection.
30-year Treasury Sep Contract (US, ETF: (TLT))
Gapping up Monday helped to confirm Friday’s dip gained no traction, but it didn’t prevent fresh lows intraday. The fresh lows were absorbed by recovering back to the morning’s open, but no higher, as the 137-22 target above remains outstanding.
Crude Oil Aug Contract (CL, ETF: (USO))
Despite there being no requirement to probe fresh highs, the ongoing ranging around 106.00 still needed to break under 104.70 before reversing momentum down. Monday’s dip pierced it by a nickel and then reacted up sharply to test 105.65. Now a downleg targeting 102.50 and 101.00 can be credible, so long as 106.05 holds as resistance.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Friday’s drop to 4.38 was an appropriate price for a low, but not appropriate timing. Interestingly, Monday found the perfect compromise by first bouncing to 4.43, and then holding a retest of 4.38. The retest launched a surge that attacked 4.50. A second consecutive higher close would signal the trend had reversed upward.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…