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Daily Spot… Bond detour only as a flight-to-safety? – If, Then… Market Timing

Daily Spot… Bond detour only as a flight-to-safety?

By Rod David | May 26, 2015 - 2:17 pm

A daily summary of high-profile members of several complexes… View a more detailed discussion of each chart at the end of today”s Market Wrap.

Eurodollar Jun Contract (EC, ETF: (FXE, UUP))
Closing Friday under 1.1095 had triggered an even bigger distributive pattern. Extending down through the weekend and Tuesday morning is already fulfilling much of the 1.0750 target, having tested 1.0870. The decline remains intact so long as 1.0915 now holds as resistance.

Gold Jun Contract (GC, ETF: (GLD))
Chipping away at 1205.50-1208.00 support meanwhile held tests of 1213.00 resistance to avoid reversing momentum back up. Sliding sharply Monday night tested the next lower support at 1286.00. New lows at 1150.00-1154.00 are likely in-play.

Silver Jul Contract (SI, ETF: (SLV))
Having failed last week”s attempt to recover 16.24-16.35 resistance, resuming the decline Tuesday compensated for the delay. Testing lower prior highs down to 16.65 Tuesday should extend down into the 16.45 area, too, or lower.

30-year Treasury Jun Contract (US, ETF: (TLT))
The bounce to 154-04/154-16 resistance wasn”t extended before Tuesday”s open, but neither was it rejected. That was exploited Tuesday morning during a broad stock market sell-off, and instead extended the rally back up to 156-10. Back under 154-30 would resume the decline.

Crude Oil Jul Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Sunday night”s dive from testing 59.75 had been retraced Monday, but never reversed. Monday”s night”s dip back down to the low had little chance to recover since a sell signal was already in-play. The drop extended down to test 57.70. Although unneeded at this stage, a lower close Wednesday would help to confirm the trend remains down, and likely targeting 55.00.

Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
[Rolling coverage forward to Jul, which is at a 3-cent premium over Jun] The next lower objective for a pullback was already met during Monday”s Globex at 2.85-2.87. But Tuesday”s open gapped down below it and probed lower. A bounce has room up to 2.90 before signaling that momentum is reversing up.

Posted in Daily Spot