Today’s fundamentals are bearish - but this weekend is supposed to start one of the biggest forecasted storage withdrawal weeks EVER! There is currently over 350 BCF expected to be withdrawn from 1/23 to 1/30. This would set a new record and has physical and financial traders really REALLY worried after winter storm Yuri brought a wave of massive shut ins and caused Natural Gas to go above $400 (on the physical market). February contract was pushed up to $5 while March contract stayed closer to reality based (matching current physical prices) at $3.50. I would say that most of the run up to $5 was on a short squeeze for the February contract as the CFTC had over 100,000 contracts from hedge funds taking a short position. Near term 5.061 is the resistance and 4.476 is the support and a lot of empty space between - meaning that if rational heads prevail - we will likely see a retracement down to the mid $4 or a massive gap down after the weekend. Of course, never bet against weather - if we have even more storage draws - we could be looking at the March contract running up to $4 as well….but for now, I am expecting a cooling off period.