Analysis of the open interest remains salient, the 185,140 active contracts reported on 5/16 jumped marginally to 185,932 today. Given the range it’s worth noting that OI generally increases by 8,000-10,000 lots when the market is in a downturn as speculative participants start placing new long positions and then close them out as the market rebounds, returning OI roughly to its original level. Levels of resistance and support continue to be purely technical constructions and can change roles, e.g. the downward trend line briefly capped the rally at $1.2650 and in the last two days lent support around $1.2400.

The figure below is also indicative of the nature of these speculative sell-offs in a range-bound market: