USO Update

The Overnight in to the open post is coming, but I wanted to get a USO update out before the 10:30 petroleum report.

 We have a downtrend on the daily chart with a recent consolidation.

 The consolidation is a bearish descending triangle, traders will expect this to break to the downside, but as we often see, these patterns are manipulated, an upside head fake move is most often the case.

 The 60 min USO chart has a positive leading divergence so it looks like it will be up to something soon, whether the F_O_M_C or petroleum report.

 Most intraday charts are not confirming USO right now, they are in a negative stance, however this may be the most important near term chart, the 5 min.

Note confirmation of the downtrend and a positive divergence exactly where the bearish price formation is. I would watch USO for an upside head fake break out.