Energy OverView September 2, 2011

The market rejected key resistance in the 4.14 area and quickly ducked under 4.00 again, strongly hinting at its inherent weakness. But the break of 4.048 minor resistance on the way up indicates that a short term bottom may have formed at 3.78. This idea is bolstered by the fact that the 100% projection off the measurement of the 4.983 to 4.154 move when taken from the recent high of 4.612 is 3.783. Failure to breach 4.144 resistance though takes some weight away from that conclusion and suggests the downside has more to play out. 4.13 then will be resistance for today, and with the market already probing under support at 4.05, prominently displays the reticence of the bulls.