USO Update

 This is USO/Crude in green vs the Euro in white, look how nicely they track (it's really the inverse relationship with the dollar, but the Euro is a perfect proxy). Last week we had what started off as a day trade short in USO that worked for a few days, I said time to cover last Thursday / Friday which was pretty good timing as we were expecting a Euro bounce (the dates in red are the cover post dates). However the Euro is not giving the kind of support USO needs to continue moving much higher here.

 USO is also running in to some resistance.

 Look at 3C on that USO attempt to break higher, it turned out to be a peak.

 The other charts are coming together as well...

 Here's the 5 min

 And the 15 min.

 For longer term traders, the 60 min which is very negative for this long of a time frame.

 Volume has been light on this move, that has a lot to do with the season as well, still volume is volume and this isn't bullish. That gap in white should act as a magnet.

 Here's the 15 min Trend Channel which has held the entire move, it's stop out is now around $38.25 or so.

 The 50 bar 5 min has also tracked the move well and this is a set up a lot of traders use, a break below is a short signal for them.

Personally, I would feel more comfortable with a break of the 50-bar 10 min as we rarely see "V" shaped reversals, there's usually some side ways chap or a "U" shape and a break of the 10 min would be a bit more out of that choppy zone.