Daily Spot… Bond meets target, Gold breaks support
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))
Tuesday afternoon”s dip had held its 1.1095 pullback limit, which Wednesday”s exploited with a second consecutive higher close that confirmed Tuesday”s breakout. Now at least an eventual third higher close is required.
Gold Jun Contract (GC, ETF: (GLD))
Tuesday had not yet broken lower to continue reversing Monday morning”s failed surge, but Wednesday”s gap down and follow-through to 1180.00 compensated for the delay. A second consecutive lower close Thursday would confirm a deeper downleg underway targeting the 1150”s. Closing above 1189.00 would undermine the decline.
Silver Jul Contract (SI, ETF: (SLV))
Wednesday”s open was already gapping down and probing fresh relative lows ahead of the afternoon”s Beige Book release. Lower lows stopped short of probing the 16.15-16.30. target area.
30-year Treasury Jun Contract (US, ETF: (TLT))
New lows Wednesday morning fulfilled the longstanding 149-08 target to within 1 tick before firming into and out of the afternoon”s Beige Book release. Closing above 150-16 would indicate the drop was ending, but not necessarily ready to reverse the trend back up.
Crude Oil Jul Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
After having probed above 60.80, testing 60.30 was likely to hold through Wednesday”s close. It didn”t. Closing under it suggests that much more substantial selling pressure is forming. But gapping up and/or spiking back through 60.80 Thursday would reject Wednesday”s deeper dip, while targeting 63.00. Closing under 58.75 would invalidate the recovery potential.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Wednesday”s gap down from having closed Tuesday above a multi-session range has left unfinished business above. And the intraday dip held a 61.8% retracement back into the range. Greeting Thursday”s EIA report already in an uptrend would have been a better position of strength. But immediate strength would be credible for extending higher.