December Crude is in danger of going over the falls if it slips decisively below the 43.18 midpoint Hidden Pivot support shown (see inset). That would imply more downside over the near term to at least 39.06, the secondary pivot of the pattern, or even to the 34.94 D target. This would eventually mean lower prices at the pump, but the cost would be a significant tightening of the deflationary screw that is threatening to implode the global financial system. The futures would need to fall to at least 42.00 (or so) to put p2 in play and possibly set up a mechanical short from p. Stay tuned! ______ UPDATE (9:01 p.m. ET): I’d warned that vicious short squeezes would continue to punctuate crude’s inexorable slide lower — to $29 if my forecast proves correct. That’s because shorts are going to be right on this one — a matter of copious supplies overwhelming ebbing demand — but there are far too many of them to reward with easy profits. However, lest you be impressed or frightened by Wednesday’s manic leap, check out the weekly chart to see it in proper perspective — assuming you can even find the leap.
