On the other hand, as expected, CL took a beating. Market looks pretty grim for the holders of black gold.
This week will likely trading in range. My bias is still down, so selling spikes is the play. Although, I am still in observation mode, but still holding short.
ES finally closed down today. Looking for the bleeding to continue tomorrow with the LOD at around 2640. Also worth noting is that the "island" formed on the previous day. Not sure if that really matters but...
Today was actually a very constructive day for the bulls. We should have sold off big and stayed down after the huge run we've had but in the end there's still heavy buy the dip longs out there.
Nasdaq is holding up the Dow and S&P. Hard for markets to go down big without all 3 indexes participation.
I am not talking about settlement of existing contracts. I am talking about the pricing of the front month contract. There is a supply and demand component to the basis (or premium) of that futures contract. The closer we get to expiration, the more the spot price reflects true supply and demand and production. Thus the front month price will start to reflect the spot price more closely as the time-to-expiration shrinks. Hope this clarifies matters.
CL was pretty much straight down for the day, but stayed off it's low of 22.03. Every rally was sold. Seems to be comfortable in the 22's. This is a long way off from OPEC's 30's target.