Crude is experiencing an incredible selloff after our 1st tier downtrend lines reached an inflection point on Friday. The contraction comes with the S&P futures posting significant losses after the U. S. Government quietly made a move towards the nationalization of major U. S. banks.

Additionally, the Euro and Pound are experiencing collapses of their own, showing international demand for Crude could continue to decline. Crude's movement is significant despite the light volume. Crude futures have managed to crumble below our point of no return 1st tier uptrend line and April lows in the process.

The only silver lining we find is that buyers could enter the fray to take advantage of what could be viewed as oversold conditions. Furthermore, the futures could find strength along 1/20-1/23 and 2/2-2/5 lows.

The EU and Britain will return to the forefront Tuesday with the release of fresh significant economic data. If tomorrow's data comes in below expectations while U. S. corporate earnings paint a bleak picture for consumption, the selloff could pick up momentum even from present levels.

However, we wouldn't be surprised to see some consolidation in the near-term due to the size of the selloff taking place. We'll keep our previous trend lines on today's chart to give you an idea of the significance of today's movement.

The uptrend has been seriously comprised and it's safe to say the medium-term downtrend is back in action. Fundamentally, we find resistances of $46.58/bbl, $46.94/bbl, $47.41/bbl, $47.89/bbl, and $48.22/bbl.

To the downside, we find supports of $46.07/bbl, $45.64/bbl, $45.33/bbl, $44.87/bbl, and $44.40/bbl. Crude futures are presently trading at $46.28/bbl.

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