Daily Spot… Bonds reach a ceiling, while Natty Gas sets a floor.
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 Sep Contract (EC, ETF: (FXE, UUP))
Thursday continued reacting down from Wednesday”s attack on the 1.1120 bounce limit, back to what had been the low”s 1.1000 bounce limit. At least a retest of Tuesday”s 1.0935 opening gap is required, potentially resuming the decline.
Gold Aug Contract (GC, ETF: (GLD))
Wednesday night”s reaction down from the 1163.00 buy signal was recovered to gap up Thursday, but only to overlap 1163.00 and to avoid triggering it. The signal remains valid, along with Thursday”s 1167.00 high.
Silver Sep Contract (SI, ETF: (SLV))
Extending the bounce into Thursday morning tested 15.35-15.45 resistance. One more shallow corrective dip should recover to launch a rally if the bottoming pattern”s timing remains valid.
30-year Treasury Sep Contract (US, ETF: (TLT))
Sliding Thursday into and out of the noon hour”s auction tested the pullback”s minimum 151-28 pullback limit. Probing under it to at least 151-16 was deep enough that closing back above 151-28 would suggest the pullback had ended, so the eventual third higher close above 154-14 could be produced.
Crude Oil Aug Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
The recent decline could not extend any deeper than Tuesday”s test of 50.40-50.55 while still being considered potentially only a temporary correction. Wednesday did not extend lower, and Thursday tested Wednesday”s 53.00 highs Back above 54.30 would be credible for launching a rally, or else new lows will become likely.
Natural Gas Aug Contract (NG, ETF: (UNG, UNL))
.Thursday”s EIA report was not greeted from a position of strength, as Wednesday”s fresh low close confirmed Tuesday”s breakout, requiring at least a third eventual lower close. The open”s firming was reversed down sharply on the news to test 2.64, but that recovered back above the morning”s high to test 2.73. This is a “pivot reversal” setup that often extends the reversal up immediately, or immediately after retesting its low. Closing lower would indicate a much more substantial decline is underway.