Oil provided plenty of intraday volatility today. An initial move higher, fueled by news of sabotage on production and distribution facilities in Nigeria, led to solid downside moves with plenty of profit potential. The lesson once again is to stay on your toes and assess and react to what the market tells you.    

Tonightââ,¬â"¢s setups are all about relationships to the critical moving averages.

Analog Devices (ADI) tested the 200-period simple moving average with a Fast Ball move lower on expanded range and good volume today.  A move lower through the closing price should yield another test, particularly if the Semiconductor Sector Index (SOX.X) continues its two-day slide.

Analog Devices, Inc.

Easman Chemical (EMN) is in what I call an Infield Fly pattern testing the daily 50-period simple moving average.   A move below 50.87 should generate some short interest.   I will be keeping an eye on the highly correlated Chemical Sector Index (CEX.X) for clues as to when a move might be starting.

Eastman Chemical Co.

The Consumer Index (CMR.X) also looks ready for a technical retracement right at the retest of the January 9 ââ,¬â€œ 10 highs.  General Mills (GIS), which has been unable to push through the 200-period simple moving average, appears ready to some of its recent gains as well.

General Mills

Adrian Manz is the author of Around The Horn: A Trader's Guide To Consistently Scoring In The Markets and is cofounder of TraderInsight.com. Email him at adrian@traderinsight.com.