The EIA report missed the 3.5mm barrel build consensus with a stronger build of 4.9 mm barrels, still down from last week's 6.3mm barrels, but it's still a rise in inventories which has led to
a third straight 80-year high of 417.9 million barrels and 5 consecutive large builds. In addition, refineries are slowing production of gas, but it too is above it's upper average limit.
The immediate reaction was interesting, not as bad as you might have expected and although it's very early after the initial data (less than an hour), the one thing you have to remember is the market is about perception even more so than data. Perhaps we are over-saturated with oil which may mean what for the near future?
USO's initial response...
USO 1 min chart today at the EIA release...
Interestingly this gives us the bottom tail of a potential Doji, Star or even a bullish Hammer.
Also interestingly, the only early data we have since the release shows a positive divegrence right at the USO/EIA lows of the day.
The larger trend that has been in place since yesterday's potential/probable head fake move below the bullish ascending triangle.
We may get exactly what we were looking for here.
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