USO Update

 This is USO today vs FXE/Euro in red. As pointed out several times last week, USO had been running above the EUR/USD in which it has a tight correlation, but in almost every instance, the Euro was a leading indicator, meaning it would move down as USO held stronger like you see now, but then USO would drop to fall in line.

 The 2 min 3C chart showed an early positive divergence and USO filled part of the gap, you can see it still remains in line and will most likely continue to follow the Euro with bouts resisting as it is above and did last week.

 The 15 min chart has been negative on USO, I'm not sure still if it is an expectation of the Euro being overbought, something to do with Gadaffi, both or something else, but there was a great accumulation signal so the distribution signal I would assume should be just as functional with the caveat of the "strange behavior we've seen in the EUR due to repatriation of dollar denominated assets".

 The hourly hart has been even worse and note USO did break above a strong resistance level.

Here's that level on a daily chart, what USO does at that level around $35 will be interesting. A break of that level on volume should send USO much lower (at that point I would imagine the Euro would have also broken down as well as the market).

It's just another piece of the puzzle as the long term USO chart doesn't look much different then the long term market charts.