Wow, talk about hitting an air pocket. The US Oil Fund ETF (USO) plunged from around 118.50 to nearly 110.00, but since then has not managed to recover much and instead has consolidated at the very low end of today's spike, which for now is carving out a "Bear Flag" ahead of another decline. If such a scenario unfolds, then the next breakdown should violate very significant support at 110-109, on the way to test critical support at 107-106 thereafter.



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.