Crude futures declined yesterday despite a huge rally in equities. The fact Crude didn't follow the S&P to the upside is confusing, and a bit discouraging for the bulls. Meanwhile, Crude has dipped below our downtrend line, indicating we could witness a continued selloff until our 2nd tier uptrend line.

The U. S. will release Crude Oil Inventories today. Analysts are expecting an increase of 0.1M barrels. If the number should come in higher than expected coupled with profit-taking in U. S. equities, this would provide the fuel for a sharp movement to the downside.

Though we are negative in the short-term concerning Crude futures, there are still multiple uptrend lines within which the futures can find support.

Fundamentally, we find supports of $44.59/bbl, $43.77/bbl, $42.83/bbl, and $42.43/bbl. It will be interesting to see if Crude fights to stay above the psychological $45/bbl level. To the topside, we see resistances of $45.27/bbl, $45.81/bbl, $46.68/bbl, and $47.52/bbl. Crude futures are currently trading at $44.85/bbl.

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