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: Larry Summers removed himself from consideration for replacing Ben Bernanke as chair of the Fed, sending shock waves through the system. Seemingly most removed from the turmoil's influence is natural gas, which is forming an interesting setup. Three consecutive sessions have now recovered to fresh highs despite gapping down.
Dollar Basket
Sep Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Monday's gap down attacked prior lows down to 81.13, including August's pivotal low. At least a temporary probe of fresh lows is in-play -- perhaps only intraday -- without there first being two consecutive higher closes back above 81.45.
Eurodollar
Sep Contract EC; (NYSEARCA:FXE)
Room for noise above the 1.3333 bounce limit included 1.3380, which was tested Sunday night on the Summers news. The balance of the session drifted back down to 1.3340, which is not a sell signal, but does define an area that will launch the next substantial leg.
Gold
Dec Contract GC; (NYSEARCA:GLD)
A probe above the 1321.00 buy signal after Friday's close extended eventually up to 1335.00 before being retraced entirely back down to 1307.00-1310.00 into Monday's open. An intraday bounce was retraced back down to 1317.00 and lower, still failing to reverse momentum up.
Silver
Dec Contract SI; (NYSEARCA:SLV)
Friday's post-close rally from under 21.80 eventually extended up to 22.40 but was retraced entirely into Monday's open. An intraday bounce was also retraced, leaving open the door to one more lower close..
30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Chipping away at 130-00 resistance after Friday's open back above 129-14 had begun suggesting a sizable probe higher was possible. The Summers news did trigger a gap up that extended Monday morning to 131-12. It was retraced entirely back down into negative territory at 129-27, leaving open the door to resuming the decline.
Crude Oil
Oct Contract CL; (NYSEARCA:USO)
Monday morning's gap down extended to 106.10 before bouncing. Last week's rally up to its 108.75 target is still being consolidated, and still needs to hold tests of 106.75 support to maintain the recovery potential.
Natural Gas
Oct Contract NG; (NYSEARCA:UNG), (NYSEARCA: UNL)
Monday's gap down and recovery to fresh highs was the third consecutive session to form this pattern. Extending sharply higher Tuesday is likely so long as 3.62 support is not broken.
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, atRodDavid .com .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
