The New Normal?

With May contracts in the rear view, we wondered whether oil markets would revert to some sense of normalcy. A steep contango continues, however, with June contracts assuming the role of the panic stricken expiration month.

Futures tested our initial downside target yesterday, the Fib 2.24 extension at 2728.79, and bounced overnight… …as oil and gas prices bounced sharply off our downside targets……and VIX collapsed after tagging our backtest target.The question, as is often the case, is whether the relief rally can continue once equities’ cash market reopens. And, will SPX ever get to test its own critical support?