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Currencies Tumbled Hard -- Can That Elasticity Spread to Other Markets?


They weren't even first. Recall that gold has had its own sudden reversals recently.

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: Currencies not only extended Thursday's plunges overnight and on Friday, but also essentially duplicated them -- at least, in degree. But the selling pressure was productive, closing under prior lows, and potentially reversing trends down. When one widely held market trends so substantially in such a short time, it's not unusual for other markets to become similarly unsettled.

Dollar Basket
Thursday's intraday reversal extended up overnight and intraday to attack 80.00. While that is in line with the bigger picture that a bottom is forming, the immediacy surprises me. Back under 79.78 would signal a corrective dip under way.

Jun Contract EC; (NYSEARCA:FXE)
The immediate overnight extension of Thursday's intraday reversal to attack seemed impatient, albeit productive. Gapping down under the previous three-week-long consolidation helps to confirm the topping. But near term it becomes vulnerable to a bounce testing 1.3805 or 1.3855 as resistance.

Jun Contract GC; (NYSEARCA:GLD)
Flat-to-lower ranging avoided triggering a sell signal under 1285.00, but also undermined Thursday's bounce attempt.

May Contract SI; (NYSEARCA:SLV)
Friday's dip touched the 19.05 support, whose break would otherwise signal a new downleg underway. The touch held, so far.

30-Year Treasury
Jun Contract US; (NYSEARCA:TLT)
Friday's weakness attacked the 135-16 signal, whose break would trigger at least a temporary downleg.

Crude Oil
May Contract CL; (NYSEARCA:USO)
Another bounce Thursday night kept alive the on-again/off-again sequence for launching a retest of the recent 104.00 high. Intraday action furthered the sequence by reacting back down from 101.00 to  100.00, which the pattern must hold as support.

Natural Gas
Thursday's plunge extended down further Friday to within $0.09 cents of its 4.41 target, now requiring that bounces hold 4.55 as resistance.

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.
No positions in stocks mentioned.
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