I would define a "bear raid" as a several hour selling triggered by certain event or report.

This selling has started after the initial spike up on Monday after ABS comments during the energy conference and was continuing for 4 days accelerated before settlements daily.

 

I think some traders were playing "extended market", "too far too fast", "overbought", and "at resistance" narratives. In other words - technical selling, not fundamental.

Rollover in front month futures and weaker EIA weekly have added ammunition to above points.

 

So it was more than a bear raid. 

 

Equities were playing same game. 

 

Traders have achieved some goals, they have stopped oil rise and even a small pullback.

But will they achieve more? I wish I knew.

I don't think we are overbought by now. I think we are in the back and forth digesting recent gains and losses for a few days until the next EIA weekly...which I expect preliminary 8mm bbl crude draw.

 

Best wishes,

romm