The bow may be finally breaking. Volume came up a lot overnight into borderline high territory with institutions about 20% favored to the short side and the broad market agreeing. With no news today we may not see a significant move outside the overnight range but there are good opportunities at the edges and less likely to have the volatility we saw yesterday. We think 76.25 is interim support and 82.75 is resistance right now and our plays will focus on those levels. We DON’T like selling the OL as it runs into a likely rotation center at 76.25. If it does break down we would wait to sell around 75.50 and trade into 73.50 which we think is a major support area for the intraday timeframe. The long side is weak but maybe a break trade above 81 into the 82.25 might work. IMPORTANT: 82.25 traded 2 contracts all night and we expect a hard rejection there. It is further held back by a two day rotational acceptance area just above it at 82.75/83. That should be a great fade if and when it comes up today. We will not be looking for big magnet moves today but mostly quick scalps around the edges. Watch order flow carefully…
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