Crude futures are under selling pressure today as meteorologists anticipate the cold front in the Northeast will begin to abate.  Crude futures are sinking despite weakness in the Dollar and relative stability in the S&P futures.  Hence, today's decline in crude shows us the influence cold weather was having on the futures during their recent run.  Meanwhile, crude does have a couple uptrend lines to fall back on along with the highly psychological $80/bbl area.  Therefore, investors may want to view today's pullback as a symptom of overbought conditions.  Meanwhile, investors are anticipating Thursday's U.S. Retail Sales release.  Thursday's retail data should give us a good idea of how consumption is faring in the U.S.  A strong report could help buoy crude and keep the futures locked in their new uptrend while a negative release could have the opposite impact.   Furthermore, earnings season will get into full swing next week and the results could have a considerable influence on the near-term direction of crude and equities.

Technically speaking, crude faces topside barriers in the form of 1/5 and 1/10 highs along with the psychological $85/bbl level should it be tested.  As for the downside, crude has multiple uptrend lines serving as technical cushions along with 1/6 and 12/30 lows.  Furthermore, the psychological $80/bbl level could prove to be a reliable support area.

Price: $81.37/bbl

Resistances:  $81.96/bbl, $82.35/bbl, $82.86/bbl, $83.29/bbl, $83.66/bbl

Supports: $81.19/bbl, $80.81/bbl, $80.19/bbl, $79.80/bbl, $79.40/bbl

Psychological: $80/bbl, $85/bbl, January highs and lows