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Greeting Thursday's 30-Year Auction at Resistance


Today's only real action was in bonds, with stocks falling into a 10-year auction

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: Wednesday's only real action was in bonds, with stocks falling into a 10-year auction. Thursday's 30-year auction finds the long-bond precariously positioned, and not very capable of absorbing another dip.

Dollar Basket
While Tuesday's rally had essentially ignored 80.00 resistance on the way to 80.20, Wednesday's session dipped to range around 80.00 down to test 79.95. Back above 80.10 would resume the rally next targeting 80.55 and potentially 81.00.

Dec Contract EC; (NYSEARCA:FXE)
Potential for a corrective bounce to 1.2950-1.2975 barely extended Wednesday to test 1.2925. Regardless, back under 1.2880 would resume the decline next targeting 1.2805.

Dec Contract GC; (NYSEARCA:GLD)
Wednesday's choppy narrow range tested Tuesday's low and 1760.00, ultimately holding each. Its break is still required to remove all near-term potential of resuming the rally up to 1814.00.

Dec Contract SI; (NYSEARCA:SLV)
Wednesday's narrow inside session kept alive potential for extending down to 33.00.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Wednesday's gap down was recovered back into positive territory, extending sharply higher to test the 148-26 bounce limit. Now closing under 148-00 would signal momentum reversing down.

Crude Oil
Nov Contract CL; (NYSEARCA:USO)
The recent bounce up to 93.00 resistance did not extend higher Wednesday. It was almost rejected, falling back to the original 91.20 bounce limit. A recovery above 93.00 is still needed to even begin signaling a rally underway. Otherwise, the outstanding 87.00 target would be in-play under 91.20.

Natural Gas
A pullback barely pierced the 3.45 pullback limit Wednesday before recovering back to Tuesday's 3.51 high. Thursday's EIA report should extend the rally if it intends to extend at all.

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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No positions in stocks mentioned.
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