A Rough start and END to the day for the energy complex with Crude oil futures extending the latest relapse to fresh 7-year lows. Equity nervously ended a 3-day losing streak. But the center of attention continues to be oil; and how low can it go. Thursday's re-test of Tuesday's intra-day low of 36.64 was rather uneventful. A modestly lower low produced a minor bounce which suggests additional consolidation or that a potential temporary floor is forming. The lack of follow through to the upside indicates that sellers remain in control albeit a little stretched. The falling 10-day is quickly catching up as price-action has gone sideways for the 2nd straight day. We look to sell on rallies into or near this key moving average. That said, the rather weak close could set-up the next thrust lower, depending on how deep the thrust is and when it occurs. In thinner volume hours (overnight trade) coupled with the fact that non-commercial speculators are near the lowest net long position according to the CFTC, there is some evidence that a quick recovery from a marginal new low could materialize.
