A retest of a past high may be possible.
In just about the past 24 hours, crude oil prices have rocketed from a corrective low of $110.30 to this AM's intraday high at $116.18 so far – just a 5% gain, that's all! So far, the rally in oil, an ETF of which is the US Oil Trust (AMEX: USO, Bullboard), has recovered about 60% of the prior decline from the all-time high at $119.93 to yesterday's low at $110.30. If June crude hurdles and sustains above $116.20, then I will be expecting a retest of $119.93. Meanwhile, as oil prices climb vertically, the e-SPM appears to have entered a correction of the upleg from Wednesday's pullback low at 1382.25 to this AM's high at 1427.00. A break below 1408 will argue for additional weakness into the 1400-1398 target zone.
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