USO fills the gap

In yesterday's USO Trade Update we were looking for the gap down created yesterday to be filled, this morning, despite a stronger dollar, it did exactly that.

 The larger trend of a lateral market in oil, despite geo-political risks that would normally have pushed oil much higher on uncertainty.

 The gap , which was partly filled yesterday and completely filled today.

If you aren't already in the USO short and looking for an entry, the highest probability entry is a move (even on an intraday basis, but closing is stronger), below yesterday's lows. A tighter entry would be on a move below yesterday's doji close around $37, I would consider waiting until it is below $37 a bit.

You could also enter in this area, however the probabilities are much higher as the move lower resumes and in this case you aren't giving up much in the way of the Percentage move for those higher probabilities.