CLU23 – September Crude (Last:80.58)

Just when it looked like prices at the pump were going to ease below $3, this nasty little sumbitch poked its snout above the transom and was threatening to take out some important peaks recorded since last November. The most important of them, an 83.59 high notched on November 7, seems likely to give way if a ‘voodoo number’ at 82.52 is easily penetrated to the upside. Perhaps the increase in energy costs this would produce is the reason why the stock market looks ripe for a fall? We may be better equipped to answer the question by week’s end if not sooner. ______ UPDATE (Aug 2, 9:10 p.m.): The futures have plummeted after ratcheting up to within an inch of a voodoo number that got some play among advanced Pivoteers on Monday. More is needed to bring relief at the pump, but it’s not clear yet whether sellers have the guts to bring crude quotes down into the low-$70s.