As of 730 CST,
the market auctioned down
toward Fri’s Stopping Point, 90.10s,
encountering no sellside response,
subsequently rallying off the low,
overnight inventory neutral.
The market has retested Fri’s Stopping Point
during Globex session. Near term, unless sellside drives the market below this level, potential for Fri/Mon Globex sellside inventory short in the hole.
As inferred last week, here & here, the failure of the 92.50s to hold as support resulted in price discovery lower toward the Major structural support at 91.50s.
The market broke down through that support, as price discovery drove the market down into Dec & Oct 2012’s middle cluster, 90.30s-87.90s, here, achieving a stopping point at 90s, at/near the cluster POC, 90.20s.
Market response at/near the Major structural resistance, 91.50s, (prior support) will be key in next week’s auction. IF that area is defended by the sellside, then price discovery potential lower toward 88s. IF 91.50s fail to hold as resistance, then price discovery potential higher within 91.50-95 cluster as inventory is adjusted.