USO Update

USO continues it's bearish action mentioned yesterday. There's a bit of an intraday counter trend move that looks to be failing , so USO should be getting ready to make another leg lower which may be useful for timing positions.

 Yesterday's very negative 1 min trend and churning in to the EIA petroleum report released yesterday at the yellow box, the current position is leading negative.

 The same 1 min chart zoomed to intraday view shows perfect confirmation of yesterday's move and this morning's counter trend move has already started going negative in the red box.

 The 2 min chart which is also in leading negative position saw a small positive divergence on the open leading to this morning's counter trend move, which is in line on the 2 min chart. IF or as the 1 min chart continues to deteriorate the divergence from the 1 min should change the current in line intraday status (green arrow) to a negative divergence and that would be a signal USO's a.m. move is getting ready to make a new leg down.

The 3 min chart clearly negative in to the EIA report yesterday (yellow) and confirmation of both the downtrend and this morning's counter trend move. If the 1 min chart continues to deteriorate it will migrate to the 2 min and then the 3 min, etc. The 3 min chart and 2 min chart for that matter do NOT show anything positive beyond simple confirmation that seems to be fading already as the 1 min chart shows.

In other words, if you were so inclined, a negative 2-3 min chart would be a high probability intraday reversal to the next leg down.

Crude Futures (1 min) are confirming the above 3C charts.

The intraday counter trend move up is seeing the exact same 1 min negative divergence starting (new divergences always start on the earliest timeframe and migrate through longer timeframes if the distribution keeps up, thus giving us a higher probability entry).