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.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Thursday’s gap up and extension higher finished the retracement of two weeks of selling pressure, but the close was still testing higher prior lows at 80.25. Almost any further dipping would be likely to return to recent lows testing 79.75 and lower.
Eurodollar Sep Contract (EC, ETF: (FXE))
Spiking down Thursday stopped suddenly upon intersecting with uptrending support off of two-week old lows. The entire session consolidated there instead of bouncing, all but requiring a gap up above 1.3625, and then recovering 1.3655 to disqualify and instead resume the rally.
Gold Aug Contract (GC, ETF: (GLD))
Wednesday’s positive close at 1330.00 was disqualified from confirming Tuesday’s breakout attempt. Thursday’s gap down held 1313.00 to avoid triggering a new downleg underway. The gap back to Wednesday’s close or at least to within $3 should be the next leg, and its resolution should define the pattern’s next major move.
Silver Sep Contract (SI, ETF: (SLV))
Gapping and spiking down Thursday held the 20.80 prior low and recovered to close just above 21.05, which avoided triggering a new downleg. Closing just under 21.20 prevented signaling that momentum had reversed up to launch a new downleg.
30-year Treasury Sep Contract (US, ETF: (TLT))
Already having failed to hold 136-02 as a pullback limit Wednesday — in fact, gapping down to it and trending down intraday to 135-06 — already had undermined whether the drop was only a correction. Thursday’s plunge to 134-10 further suggested the recent decline was not necessarily limited. Closing back above 135-00 would have signaled momentum reversing up, but closing above 134-25 was enough to at least rob sellers of their traction.
Crude Oil Aug Contract (CL, ETF: (USO))
Thursday’s gap down extended to test 103.70 and closed at 104.05 to all but confirm the drop targeting 102.50 and 101.00 is underway. Closing above 104.70 would invalidate the downward momentum.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
The favorable knee-jerk reaction to Thursday’s EIA report stopped short of even touching 4.44-4.45 resistance, let alone closing above it to signal the drop’s momentum had lapsed. Its recovery still would be bullish, but closing above 4.50 is still the minimum requirement for launching a new upleg.
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