USO Update

This is still a bit early for a good read, but we'll take a look anyway as I suspect that oil traders understand prices must rise as the Saudi substitute is a poor one, it's not heavy sour we are seeing shortages in, it's light sweet.

 I'm venturing a guess here, but this price formation, which technically (bigger picture ) is still solid, looks as if it may be trying to form a consolidation/continuation triangle or correcting through time.

 The hourly 3C, TSV and MoneyStream ar all in line with a bullish move and 3C is actually starting a leading positive divergence.

 The 5 min chart shows the pullback from last week, the white box is the (stronger then confirmation) 3C move last Friday I mentioned and now in green we have confirmation of price, however, it is close to a relative positive divergence and certainly leans more positive then negative.

The 1 min chart is showing us again that better then confirmation, maybe even a slight leading positive divergence in this morning's pullback.

My job is to show you what the market is doing, I don't like to try to venture guesses about why, but I will this time. I think it's possible that crude traders know that prices have to rise with the mideast conflict and what I said earlier about the Saudi crude as a "crude" replacement. They may be taking this opportunity as the market(retail) feels there's no problem as the Saudis will absorb demand. Retail may not be sophisticated enough to understand the problem and locals may be using that to their advantage to stock up on the cheap. THAT IS OPINION, but from what I see, it's the only thing that makes sense to me.