USO Update

Whether it was the petroleum report or as some are suggesting, margin calls on Italian bonds as the calls go out at the close of the European cash markets (the timing is so similar, it's hard to tell, but the idea is that Italian bonds would be hedged by a short oil position because of the FX correlations which almost makes sense given the nature of the 3C charts, to cover the margin call on the BTPs, they'd need to cover the short in crude), I doubt we'll know, here's the latest update on USO. I still consider < $36.50 to be the line in the sand.

 The 1 min chart continues to deteriorate.

 The 5 min chart had enough time to confirm, it didn't.

And the 10 min chart has barely moved, which makes this move (which was parabolic any way) susceptible to a decent pullback. Broader Equity market risk should have some influence on the situation either way.