USO still looks set to pullback a bit and regroup before going on to take out the March highs. Today and yesterday's daily candle show the loss of upside momentum that typically precedes a reversal much the same as the first red square when the upside reversal kicked off. Being USO is at the March highs, there's resistance in the area and this is really the ideal spot to expect a pullback.
The 60 min chart of USO is still very strong so I'm not expecting a anything more then a healthy market correction.
The 5 min chart and distribution the last 3 days, two of which were star/doji candles.
We still have a long signal on the crossover screen and typically the yellow moving average is where the first pullback occurs after a new move up. This move is a little extended and may pullback a bit more, perhaps to $40-ish.
Oil right now is extremely sensitive to events in Israel, it hasn't reacted to other MENA events on a daily basis the way it has to Israeli conflict. That's the only real fundamental change that I could see effecting oil in way other then what's expected above.
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