Here is the 2-hour chart picture carved out by gasoline futures in the past couple of weeks, which shows the parabolic-like move created by Katrina.  At this point, the pattern is warning us that if another plunge emerges that presses prices below 2.07/gallon, the overall downleg from the September 1 high at $2.46 will exhibit very bearish form and will represent the first downleg of a larger downmove that should press twoards an entire relinquishment of the post-Katrina upmove that started at $1.84/gallon.  The action during the next couple of days will be critical to the intermediate-term direction of gasonline prices as we head into the end of the year.

MJP 9/6/05

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.