Suggested at the beginning of the week was the potential for the market going to “rhyme” with its history, or continue to run beyond reasonable technical areas. My belief was that the market would succumb to the historical weakness surrounding Labor Day and that is what has occurred. In the last eight years (2020 included) the Labor Day low has occurred sometime by the 10th of September. The seasonal trend continues– the bigger question now is does the market extend lower or start to recover. Needless to mention- the over bought conditions have been mitigated. Still surprised at the expanded spreads in the Oct vs any of winter months– one my highly respected physical traders was as puzzled as I remain. Discussed earlier in the week– one position has to change — either Oct chases Nov, Nov has to decline to Oct, or the market stays keeps the spread extended and the correction will occur after Nov takes over as prompt. Keep those choices in the back of your trading mind.
Major Support: $2.28, $2.186, $2.162, $2.089-$2.055, $2.029-$1.937, $1.86, $1.527, Minor Support:$2.255, $2.195, $2.102, $1.975 Major Resistance: $2.743-$2.755, $2.809Minor Resistance: $2.37, $2.49-$2.51, $2.56
