Let's notice that oil prices according to the US Oil Trust ETF (USO) spent the prior three sessions attempting, but failing, to hurdle the 108.30/40 area, and instead this morning are under some pressure (105) area). Having identified the problem area above the market, let's also be aware that the selling pressure so far has not inflicted any meaningful technical damage to the powerful uptrend. A sustained break of 103.50 is needed to begin to inflict some technical damage to the most recent portion of the intermediate-term upleg (from the May 1 low at 88.89). Thus far, tough, the USO appears to be finding support just above key near-term support, which leaves the sidelines as a spectator, not wanting to be long but too early to be short.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.