Crude/USO Update

As mentioned earlier, the Euro will have to move a bit before crude moves, in this case though, crude seems to be discounting ahead of the Euro-bad news by the looks of it.

 USO just about took out the last 2 days' trading range in about 60 minutes.

 Yesterday I mentioned churning across various assets incl. the market, here you see it in USO in the white box. Note the candles all have long upper wicks, telling us higher prices are being rejected and on a heavy volume spike-churning like this is rarely bullish. The FXE/Euro comparison is in red, you can see USO is seemingly forward looking in discounting as it broke the correlation and headed much lower then the Euro.

 3C 2 min shows not only the churning in the white box with a negative divergence, but also a local head fake. In green is inline trade and we have a small positive divergence as you might expect with a drop of that magnitude that quickly.

The 15 min chart is starting to look a lot worse and is leading negatve.

I'll get to the market in a minute.