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Oddly, Gold and Dollar Both Down Today

By: Minyanville
Posted: 5/1/2013 5:03:00 PM
Referenced Stocks: FXE;GLD;SLV;UDN;UUP

The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: Gold slid sharply Wednesday morning, which recent distributive patterns had warned of. Much more interesting is that the early slide was accompanied by a sharply lower Dollar Index that was fulfilling lower targets. Gold may be lagging behind the dollar, so its strength Thursday could help gold end its pullback soon.

Dollar Basket
Wednesday's gap down immediately fulfilled the long-standing 81.40 target. It held as support through the close. A second consecutive lower close is needed to form a lower target.

Jun Contract EC; (NYSEARCA:FXE)
Wednesday's gap up probed fresh highs attacking 1.3250. A second consecutive higher close Thursday would confirm whether potential remains intact up to 1.3325, if not also 1.3425.

Apr Contract GC; (NYSEARCA:GLD)
Wednesday's slide from 1472.00 to 1440.00 helped to confirm the recent distributive pattern whose pullback target is 1429.50, so long as 1463.50 isn't recovered.

May Contract SI; (NYSEARCA:SLV)
Wednesday's gap down extended to 23.25 support, presumably on the way to 22.95 so long as 23.55 is not recovered.

30-Year Treasury
Mar Contract US; (NYSEARCA:TLT)
Fresh highs above 149-05 were probed Wednesday morning, and then the long-standing 149-14 target was tested up to 149-21 Wednesday afternoon. The close dipped back down to 149-05. Back under 148-28 would signal momentum reversing down.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
The 91.00 target was fulfilled early Wednesday. Its reaction up failed on EIA data, extending down to 90.11, but ending the day back at 91.00. There is no active signal.

Natural Gas
Wednesday's early surge compensated for its delay from Monday and extended sharply higher intraday to fresh relative highs at 4.44. The balance of the session slid back toward Monday's lows at 4.31. Thursday's EIA report is not at all assured of resuming or extending the rally.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com .