Crude oil is another market that looks to be nearing a major (long-term) top, but hasn’t established a bearish reversal pattern as of the end of August. Recall from last month when I talked about the bearish crossover by monthly stochasitcs above the overbought level of 80%, a signal the major trend was set to turn down. However, the spot-month contract was able to hold onto a small gain at the end of the month, closing up $0.48 at $73.95. The spot-month contract never threatened a clear reversal pattern during August before it closed at $68.50, leaving few opportunities as we head into September. Initial support is at the 4-month low of $61.56 from May. Fundamentally the market remains bullish meaning noncommercial traders have little reason to sell. The spot futures spreads continues to show an inverse (backwardation) of $0.25 in early September, with the forward curve inverted though at least July 2022.