Levels to Watch to See if the Energy Complex Can Turn Around

Energy markets continue to show a move to the downside, having broken down technically for the most part. From the NYMEX trading floor, Jeff Grossman of BRG Brokerage tells TheStreet’s Jill Malandrino traders have to be careful with chart points right now. Grossman says a key level in oil is the 90.60 and any settlement below 92.40 on the NYMEX close would put us in a downward trend. Grossman explains hurricane season and weather in the Northeast are the biggest variables. The gasoline play goes into about mid-October and then traders turn their attention to heating oil in the Northeast, which impacts crude, and natural gas in the Midwest. There has been some light action in the later-dated $5 and $6 natural gas options but Grossman says traders are not diving in drawing a line in the sand, but rather scaling in.