Spoke about the trends in the expiration process in both the Daily and Weekly sections– had no clue that the market would further the trend another month (in the first day)– but it seems like that is the idea. Cannot jump on the July or August contract at these levels currently, though. Not enough volume, the ATR (discussed in the Weekly) is in an historical danger area, and the trade around Memorial Day Holiday, has shown weakness either side of the Holiday, historically. That does not prevent aggressive folk from taking a position during the day only to leave at resistance. That said, the move yesterday does provide the question of whether the trade is setting itself up for a break out above the calendar May high, either during expiration or just after as the July contract is trading at an $.08 premium to June. Should a break above occur– let the short covering occur — don’t chase– wait for the Holiday weakness to provide better opportunities (if it does). If it breaks down chose the level you are comfortable with to initiate length.
Major Support:$7.663, $7.50., $7.00-$6.855, $6.411-$6.392, $6.247-$6.278, $5.27-$5.199, $5.001, $4.40-$4.26, $4.187 Minor Support: $7.722- $7.69, $6.00, $5.063, $5.04, $4.88, $4.60-$4.557 Major Resistance: $8.996, $9.60
