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Rod David: Gold's NFP Reaction Isn't the Stuff of One-Day Wonders


Wednesday's head-fake suggests there's still more pessimism to overcome.

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's head-fake bounce on Wednesday was never completely rejected Thursday. But it was rejected to the point of almost reversing momentum down. Anyway, the first shot across the bow isn't usually followed by a second one. So Friday's trending -- not only in gold -- should extend through Monday morning.

Dollar Basket
The basket's weighting prevented extending higher Friday, so Thursday's breakout has yet to be confirmed.

Jun Contract EC; (NYSEARCA:FXE)
Friday's fresh low confirms the breakout, with near-term support at 1.3655-1.3660 and targeting 1.3575.

Jun Contract GC; (NYSEARCA:GLD)
Thursday's drop back to its 1285.50 pullback limit launched a bigger rally leg Friday. There is potential to 1317.00 so long as 1298.00 holds as support.

May Contract SI; (NYSEARCA:SLV)
Curiously, the initially favorable reaction to the employment situation report wasn't maintained. But closing higher Monday would confirm 20.70 is in play.

30-year Treasury
Jun Contract US; (NYSEARCA:TLT)
Greeting Friday's report from closing above 132-06 Thursday made a favorable reaction likelier. But the pullback's depth makes a favorable reaction only temporary. There is potential up to 133-28 and 134-06 so long as pullbacks now hold 132-28 as support.

Crude Oil
May Contract CL; (NYSEARCA:USO)
Closing above 99.80 Thursday put into play 101.00, which was probed Friday, signaling new relative highs above 102.35-102.60 in-play.

Natural Gas
Friday's weakness to 4.42 should suffice for resuming the near-term rally up to 4.53.

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.
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