Congress Seizes Control of Headlines

On September 30, 2013 by TradingDesk

Congress has seized control of the headlines, as the debate over a government shutdown reaches its final hours. While last minute deals have come to be expected, it is unclear if there will be fall-out – like the US Debt downgrade in 2011 – that could further roil global markets. How the action in Washington plays out could be the determining factor on whether or not energy prices can continue their September slide, or if last week’s bounce puts a near term floor under prices.

RBOB and ULSD are both trading a nickel above last week’s lows, and short term technical indicators have moved into neutral territory, with a slightly bearish bias longer term. If the September lows of $2.60 and $2.93 respectively break down, expect another 10-15 cents of downside before the next layer of support is found. $2.70 and $3.00 proved solid resistance last week to any attempt to rally.

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