Once again pours into the short side with a decent favor to the institutional order sizes. Euro markets even more pronounced. No news other than an oil at 10:30 lessening the probability of a complete gap fill. We will likely see a return to the 83 handle at some point though. You will notice many of the rejection areas today are also acceptance areas which will make those price that much more volatile. What happens is the acceptance areas want to hold the price while the other wants to run away from it. We like to just scalp the vol in those spots. The 85/86, 80/81, 78/77, and 74/73 handles are all subject to that today. There is strong interim support around 78 and the point of no return on the short side is around 73.50. On the long side we think there may be a nice scalp fade op at 84.50 if we can grind back there and there is some overhead resistance starting to form around 85.50 and we will not be looking to fade the OH at 86 today. If it gets above it we may trade long from 87.00 into the 88 retest. You really need to watch your step north of 85.50 as those prices are all in the September 08 selling tail and the market really doesn’t understand them very well right now. We most likely won’t be trading north of 88 until we get to 89.75 or so which is the first real cluster of potential volume support up there.
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