Crude Oil Update

I last posted about Crude Oil (USO) here. Since then it has rallied modestly, but is now starting to break down. Technically speaking, it looks prime to continue dropping.

The daily chart above shows that MACD divergence has finished forming, which should portend lower prices as MACD starts to neutralize. Also, notice the distribution days in which price dropped significantly on higher volume (arrows). 5 instances occured in the past month while price stayed in a fairly narrow range. It looks like institutions have been quietly selling oil at these high levels. This makes me think that a correction to at least $90-100 is quite likely.

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