As I noted last night, today we'd be watching the $104.50-$104.65 level in crude oil. Any break of that had the chance to bring in significant selling. Traders tried to rally oil off of overnight lows at the open of the pit at 9am but that was soon reversed and price probed that $104.50 support area. As soon as it was breached the floodgates opened and we saw a few hours of heavy, sustained selling.

The price target for the down move was $102.64 and that was reached and surpassed near the end of the pit session.  We have since bounced about $1.50 from the lows but many traders will be looking to short bounces tomorrow. A couple notable areas to look short will be $103.91 and $104.33.