Earl Shades of Grey

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The weekly chart above of the USO (ETF for crude oil) shows a clear falling channel since May that has taken price below its 2010 lows. However, the breach of last year’s lows was short-lived, and price is currently consolidating right were you would expect demand to come in. I know a bunch of traders who are keying off of crude for a direction about risk appetite in equities. Should the USO break up and out of this falling channel I believe it will be another sign of an intermediate-term change in character of risk appetite that we have not seen in many months.