Not sure what to make of these coming three days of the expiration process. Last month, the sky was fall (as well as prompt) going into the weekend and it looked like the 16 month trend was toast — only to rally 12% in the last two days. This month, prices are coming off of two higher weekly closes and seem to be headed to the moon (discussed in the Weekly section). Does the strength and 16 months trend of prices being well-bid into the expiration– do traders liquidate the moves from last week and take profits– or do prices wallow in a tight zone (the most unlikely considering current volatility). Today is like the key day for August gas– last week folks really like Augy but wanted little to do with the fall or winter prices as August to to a premium to December. That relationship continues to hold on Sunday night as August and Dec are at parity and at a $.13 premium to Sept. August could become an independent beast that no has a clue where it trades — but the market itself may not choose to participate.
Major Support:$8.02, $7.55, $7.14, $6.88, $6.754,$6.38, $6.02, $5.623, Minor Support: $7.41, $6.42, $5.548, $5.40-$5.45 Major Resistance: $8.417, $8.95, $8.996-$9.057
