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One month ago the Power of the Pattern suggested to Premium Members that the position to take in the Crude market was to “Short Oil” due to channel resistance, crowded sentiment conditions and overbought momentum.
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The inset chart reflects the performance of Crude oil compared to SPY over the past 30 days.
USO since hitting the top of the channel has broken support, yet long term momentum remains overbought and smart money traders remain positioned for a decline. Do keep in mind, SPY often follows the big patterns of Crude oil (see oil/spy correlation here)
Anyone like the prices at the pump of late??? Paid $3.11 this weekend at Sam’s, makes me want to drive more its sooooo cheap!