Oh What A Night

On March 7, 2012 by TradingDesk

It’s been a quiet overnight session, as US and European markets lick their wounds after their worst day in 3 months. The ADP jobs report showed 216k private jobs added in February, which has helped futures bounce, taking back roughly 1/5th of yesterday’s losses.

Energy prices held up relatively well during yesterday’s blanket selling of risk assets, settling down less than 1% while most stock market indices were down 1.5-3%, suggesting that fears of supply disruptions continue to trump economic worries for now. Both RBOB and HO settled below their 3 month old trend lines, and their technical indicators have moved into neutral territory. From here, HO needs to break support at $3.17 or resistance around $3.23 to find further direction. RBOB has a wider range of consolidation between $3.20 and $3.30 that should contain trading until our next big move is found.

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