USO/Energy Update

USO and Energy are correlated, but Energy is a much broader Industry group with services and other non-crude components, so they trade a little bit differently.

USO

 USO 1 min showing today's action from the negative divergence on the open sending it lower, to a positive divergence recently. This is short term, intraday action.

 USO 5 min chart shows the last cycle down, accumulation for this cycle up and a pretty strong negative divergence in place now.

 USO 10 min is also in a leading negative position.

 Here are two cycles, note the 15 min chart is much more negative on this cycle top.
The way USO looks now, it may be one of my first short positions I enter. The Euro/$USD is what the trade is all about at this point.

EUR/USD

 In red, this is the  resistance zone I expected to fail last week. Since the Euro has moved higher, pushing the dollar lower and allowing a positive environment for equities. When this reverses, so should USO and the broad market.

Here's a 1 min hart of the same FX pair, right now there is a consolidation, when this breaks, I'll be looking to short USO/Crude as a higher dollar will bring oil prices down being they are traded in dollars across the world.

XLE-Energy 

 This is the broad Energy Industry Group, the 1 min chart hasn't been very strong today.

 There's a relative negative divergence on the 5 min chart as well.

 This shows the last cycle's top, the accumulation for the move up in white and current negative divergences.

This 15 min hart shows a broader history going back to August with accumulation in white and distribution n red. One notable feature of XLE, when it falls, it gaps down most of the time.While I feel USO is a stronger short, I also want to have exposure to Energy on the short side for that initial gap down that is likely to occur.