A $1.00 drop from these levels over the next two days would do serious technical damage, since it would create a powerfully bearish impulse leg on the daily chart. Such a move would in fact exceed four prior lows, two of them “external,” leaving an unambiguously negative picture for the intermediate term (i.e., 4-6 weeks). Most immediately, the rally from yesterday’s v-shaped bottom had the potential to get the futures out of immediate jeopardy. It had stalled a penny from a 16.920 midpoint resistance, but assuming this obstacle is breached before 16.730 is exceeded to the downside, a follow-through thrust to at least 17.105 would become an odds-on bet.
