Connecting the Dots

The trade setup we discussed late-last week, for another round of weakness in crude oil, looks to be playing out this morning. In addition, connecting the dots to correlated assets, Russia is gapping down and energy stocks may be ripe to short, too.

I have my eye on another long entry into ERY and/or RUSS, the triple-short ETFs for energy stocks and Russia stocks, respectively. 

However, in order for that thesis to stay on the table crude must stay weak. Specifically, that 20-day moving average (orange line) on the USO daily chart ETF, below, should now act as resistance since the moving average "sandwich" has been lost on this gap lower.