Crude futures are trading back above their psychological $80/bbl level and are rising above our 2nd tier downtrend line. The Dollar is beginning to retreat following earlier gains, helping crude consolidate with an upward momentum. Speaking of momentum, yesterday's upward momentum appears to be intact since we have received relatively light economic data today. Meanwhile, the S&P futures are staring down their highly psychological 1100 level and previous 2009 highs. Therefore, it appears we are approaching a critical juncture as far as the continuation of crude's uptrend is concerned. Considering Dollar technicals remain weak across the board while gold holds strong above $1100/oz, it seems crude's correlations continue to create an environment support of extended gains should the fundamentals warrant such a movement.

Attention will shift to the Far East with the release of some key China econ data. China will be printing a wave of data late Tuesday EST, including Industrial Production, CPI, PPI, and Fixed Asset Investment. Any outperformance in China's econ data could help fuel an S&P retest of 1100. Such a development would likely bode well for crude since the futures are staring down their own previous 2009 highs.

Technically speaking, crude has our 1st tier uptrend line serving as a technical cushion once again along with 11/06 lows and the psychological $75/bbl level. As for the topside, crude faces previous 2009 highs. Meanwhile, crude's movement should follow the path of the Dollar for the most part until the wave of Chinese econ data late Tuesday EST.

Price: $80.25/bbl

Resistances: $80.43/bbl, $81.08/bbl, $81.61/bbl, $81.94/bbl

Supports: $79.82/bbl, $79.53/bbl, $78.79/bbl, $78.47/bbl,$77.98/bbl, $77.34/bbl

Psychological: 2009 highs, $80/bbl