Call me crazy, but I'm not totally sold on a oil bounce here. Watch for 8am and 9am moves that violate resistance here. Otherwise, I see no reason to be giddy about a mere 2% overnight move to upside on zero news. Sitting short and cautious. Still looking for 29.00 - 28.50.
Comment: We tested resistance at the top of the bear channel on this morning's open. Looks to be rejected, as $ES_F is falling apart. We'll need to watch for the government's inventory numbers at 10:30 for confirmation. Last night's API report saw an unexpectedly large headline draw, but large builds in distillate and gasoline inventories, which traders used as a reason to sell. Look for similar action at 10:30 today.
Comment: Yeah...that's a lot of gas! Confirmed rejection. People are crazy to be buying $CL_F.