USO Update

As you know, we were expecting a bounce in USO today to start with, the news of a Saudi pipeline on fire sent crude up quickly, but in the article from The Arab Digest  the article said,


"the Saudi government sources were quick to claim that the fire is one kilometer away from the pipeline. "

This seems to have effected USO as the initial story would certainly send it up, but it sound like the actual pipeline is still functioning...

 I would think when volume first started picking up, that was on a rumor, when it really increased that was on the story that the pipeline was burning and the move down on subsequent release from the government that the actual pipeline is not burning.

There was a relative negative divergence, but I think it is not connected to the story.

It will be interesting to see what USO does tomorrow, as you may remember earlier today I said typically on a channel buster the retracement is to the bottom of the channel "Kissing the channel good bye" which as you can see, prices moved in to the channel and found resistance there with the long upper wick on the last candle on the 60 min chart.