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.
Eurodollar Sep Contract (EC, ETF: (FXE))
No volatility Friday made volatility unlikely Monday morning. Having passed that restraint, the balance of the session extended the decline to test 1.2885. Just closing above 1.2955 would be the minimum requirement to even begin suggesting the decline’s momentum was lapsing.
Gold Oct Contract (GC, ETF: (GLD))
Not yet recovering above 1270.00 kept Friday’s return to 1265.00 vulnerable to extending down. Thursday night’s 1258.00 low was retested Monday morning on the way down to 1252.00. Having tested 1253.30, closing back above 1262.00 would suggest that Monday’s dip was a temporary detour being reversed back up. Delaying a recovery would next target 1243.00 and then lower.
Silver Sep Contract (SI, ETF: (SLV))
Monday morning’s drop attacked Thursday’s low, and later broke it, testing the upper-end of 18.85-19.10 support that had defined June’s low. Its test must be rejected quickly, and in tandem with Gold, to avoid trending down substantially lower.
30-year Treasury Dec Contract (US, ETF: (TLT))
Gapping up Monday from Friday’s 137-26 fresh low was in-line with expectations for the pattern to continue ranging widely around last Tuesday’s 138-22/138-25 close. So was the complete retracement back down to fresh lows at 137-23, albeit surprisingly abrupt. I suspect that abruptness is pessimism, which would allow a bigger bounce triggered above 138-02/138-06 targeting 139-24. Otherwise, extending the decline already would target 136-26.
Crude Oil Oct Contract (CL, ETF: (USO))
Filling the gap back down to last Tuesday’s 93.00 close had failed to recover Friday back above 93.65 to end the decline, which extended to new lows on Monday, now probably targeting 91.00. That lower target is likely despite Monday’s bounce from 91.80 up to 92.75.
Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
Monday’s gap up to 3.83 partially suggests the test of 3.79 support has stretched selling too far to be sustained. But it must extend to close above 3.87 to even begin suggesting that momentum might be reversing up. And first filling the gap back to Friday’s close testing 3.79 would be preferable.
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