This market needs to chill and consolidate somewhere along the way. Last weeks declines did not take the Weekly RSI out of the extreme zone and then Monday’s parabolic move moved the indicator to extreme levels not seen in years. All this volatility is great for us who trade it, but it does not invoke confidence for those folks who use it or produce it. As expected, the market declined as Nov took over as prompt. I am not convinced that there will be a decline in volatility today as we get a storage release that usually increases volume and volatility. Speaking of volume, Tuesday’s run and retracement was the second highest volume day of the month. The highest was the day gas ran to $5.65 then retraced– expiration Tuesday was just behind it in volume as prices set a higher high (+$6.30) only to retrace. Odd coincidence I guess. Yes, the market needs to take a breath (possibly retrace more), just not sure today will provide calm or provide more oxygen to the rocket ship.
Major Support: $5.17, $4.88, $4.61, $4.537,$4.375, $4.211, $4.156, $3.92, $3.821, $3.722, Minor Support: $4.728-$4.70, $4.66 Major Resistance: $5.65, $5.93, $5.88-$6.493
