Daily Spot… Euro lets its vulnerability show.
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))
Monday fulfilled the last remaining upside attraction by retesting 1.1414 — both overnight and post-open. The resolution was not immediate, but it was substantial, as Tuesday”s open gapped down sharply to 1.1214. The session did not trend down, so bounces should be shallow before extending the break, preferably no higher than 1.1250-1.1275.
Gold Aug Contract (GC, ETF: (GLD))
Monday”s steep drop to test 1183.70 support extended down Tuesday morning to attack the next relevant support at 1175.00. Despite it holding, the second consecutive lower close did confirm Monday”s breakout. The next lower objective is 1158.50.
Silver Jul Contract (SI, ETF: (SLV))
Tuesday”s break lower to test 15.70 is a breakout. Follow-through Wednesday is likely, but not necessarily a second consecutive confirming lower close. Confirmation would be credible, but we”ll be monitoring for any signs of recovery.
30-year Treasury Sep Contract (US, ETF: (TLT))
Filling the gap Monday back down to Thursday”s close without reacting up had made a fresh low likely. Tuesday”s gap down initially extended lower to test 148-08. Recovering back above 148-20 nearly filled the gap back to Monday”s 149-24 close. That slight pessimism might be enough to trust early strength above 150-08 for extending higher. Closing back above under 148-20 would instead signal a new downleg underway.
Crude Oil Aug Contract (CL, ETF: (USO, USL) (UWTI-long, DWTI-short))
Monday”s late surge had stopped short of attacking 60.70 and was retraced overnight to 59.55 after Tuesday”s open. But another surge probed 60.70 and tested the 61.20 buy signal. EIA reports Wednesday morning.
Natural Gas Jul Contract (NG, ETF: (UNG, UNL))
.Gapping up Tuesday above 2.77 began to signal that Monday”s narrow ranging at prior lows had not gained traction. Closing above the 2.77 buy signal was another matter, as the balance of the session dipped back down to Monday”s 2.72 close.