As discussed in the Weekly section, September gave up the premium afforded it as prompt quickly last week. The declines continued into the recent range, closing the outright contract below the critical trend line, but when the trade continued prices had rebounded $.02 by the end of the trade day, closing just below this critical trend line. The tendency for the last three weeks, have been Monday’s showing a decline.
We should get a great indication of whether the bias in this market is changing (per the Weekly section) during the coming couple of weeks. Last week occurred on lower volume and a slight gain in open interest, but according to the CFTC report showing positions as of the 28th, Managed Money short positions have been reduced 11,245 contracts while the the Managed Money long positions had increased 7,294 contracts– the speculators seem to be changing there bias.