Daily Spot… Crude Oil is testing its resolve.
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))
After Tuesday”s gap down went on to only range sideways intraday, not gapping down Wednesday made the decline unlikely to extend. And, therefore, unlikely to confirm Tuesday”s break. Bounce potential to 1.1250-1.1275 can be probed intraday, but must hold through the close to maintain the near-term downward momentum.
Gold Aug Contract (GC, ETF: (GLD))
Tuesday”s confirmation of Monday”s breakout already fulfilled its minimum third lower close Wednesday. Bouncing from 1168.00 closed under the week-old prior low to trigger another pattern whose objective is 1162.00, while the bigger picture still targets 1158.50.
Silver Jul Contract (SI, ETF: (SLV))
As was expected, Wednesday avoided a lower close that would have confirmed Tuesday”s breakout. That doesn”t reverse the trend up, nor does it preclude probing lower lows, but it helps to avoid participating in Gold”s deeper decline.
30-year Treasury Sep Contract (US, ETF: (TLT))
Gapping up Wednesday helped to confirm that Tuesday”s late dip back toward 148-20 was only noise. Reacting down was recovered into the afternoon, back above Monday”s 149-24 close to start signaling the downleg from Friday”s high had ended. Closing back above 150-08 would signal another rally leg underway.
Crude Oil Aug Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Tuesday night”s fresh high testing 61.55 was retraced to test 60.70 support into Wednesday”s open. Wednesday morning”s bounce back to 61.50 was reversed down to fresh lows at 59.80. Closing under 60.70 must be recovered by noon Thursday to maintain the potential upside momentum.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
Flat-to-higher ranging Wednesday tested the 2.77 buy signal but didn”t trigger it, greeting Thursday”s EIA report from a position of weakness. Closing Thursday above 2.77 — and preferably also above 2.83 — would be the minimum requirement to suggest momentum is reversing up.