Energy/USO Update

Generally speaking Energy and more specifically, oil has an inverse relationship with the dollar, a strong dollar means lower oil pries, a weak dollar means higher oil prices. Energy and USO are two different animals, USO is more like looking at oil only, whereas Energy can encompass many different industry groups including services and types of Energy.

Here's this morning's Energy/USO Update...

XLE

 XLE 1 min is about what you'd expect to see, there was a negative divergence on the early attempt to get some upside moving, right now it's leading a bit to the downside, so I wouldn't bet on this little counter trend move up right now.

 The 5 min chart looks as I would expect, a negative divergence that I showed yesterday and carrying through today.

 The 10 min chart is just about in line with price action.

 The 15 min chart shows a negative divergence on a relative basis.

 However the longer term 30 min chart is still VERY bullish with two leading positive divergence, the second more powerful then the first as you can see by the arrow, price s lower at this second bounce, but 3C is higher.

USO

 Interestingly USO is up a bit this morning, I haven't seen anything big in the news, I would look to see if there's anything going on with tensions between Israel and Egypt. The 1 min chart is negative, but still heading up, it may reach confirmation and possibly a positive divergence, but I'd be more likely to look for a quick intraday short here then a buy.

 The 5 min chart is headed up pretty fast too, but still locked in a negative divergence.

 The 10 min chart is in a negative divergence, but just barely, it's getting close to confirmation, I think it will depend on what that 1 min chart does, if it keeps chugging north.

 Once again, the longer term outlook is very strong, the 30 min chart is in a very nice leading positive divergence. I think this fits well with what I've been expecting the last few weeks and what I laid out again last night and yesterday.

The 60 min chart is even more important and it too has an even stronger leading positive divergence, so  would not be making any long or intermediate term bets against Energy/USO.