Outlook for Thursday, July 3rd: BEARISH

• Our outlook for Thursday continues to be bearish. Despite the recent uptrend, with continued overbought signals in the market and another end-of-day price retreat Wednesday, ESAI expects prices to move lower Thursday.
• One of our momentum indicators continues to signal that the market is in an overbought range. This signal strengthened Wednesday as prices closed above $143 and will likely provide increased downward pressure on prices Thursday.
• Prices broke through the $143 weak resistance level Wednesday. The market did retreat slightly at the end of the day, however, so $143 may still be offering resistance.
• Our short-term volatility indicator is no longer bullish.
• The longer term uptrend that has emerged over the past week is likely to continue.
• Crude prices climbed $2.60 to close at a record $143.57. We were slightly bearish.