The natural gas markets originally had a pop for the session, only to fall back down by the end of the session. The resulting daily candle looks very bearish as it is shaped like a shooting star, and this shows that the rallies are to be faded as the trend is certainly to the down side. The natural gas inventories came out much stronger than expected, and as a result – supply still looks very heavy, and should continue to weigh on the market. The $4 level seems to be a bit of a ceiling, and we think that anything that gets the markets close to that is an invitation to sell again. We cannot buy, and if we see a break below the $3.75 level would send this market much, much lower.
