Crude

Downside price action in the crude pits today. Range was $2.77 with volume on par with yesterday.

We have basically reached the 38.2% retracement level. As I have previous stated, this retrace will really give us a good indication of structure.

If this is a wave 4 of any degree, we probably won't get much past the 38.2% level. Should we have ended a structure at the 81.99 H, again of any degree, we should expect the retracement process to be much deeper than a 38.2%.

It appears to me that we may have traced a H/S topping pattern. If this is the case, it would measure down to around the 61.8% retrace level at 73.81.

Watch price as it retests the broken neckline. A failure here would allow good entry for a short.

RSI has reached a level on this 120 minute chart where we should expect at least some type of bounce.

The dollar continues to make new highs from the move off its 75.085 L. This is worth paying attention to folks.