Crude, Where's My Higher Low?

Despite USO, the crude oil ETF, being down more than 6% today at various junctures, on the daily timeframe USO is still printing an "inside day," meaning today's price range is within the confines of yesterday's and not inherently bearish. We know crude had achieved an initial upside target which we observed last week and yesterday, as it became rather short-term overbought and bottom-fishers celebrated. 

Still, the upper daily Bollinger Band and 50-day moving average (declining) caused at least some consternation on the part of buyers, with today's weakness. 

Going forward, I suspect crude needs to hold the 30-minute chart basic support trendline, highlighted in light blue below, in order to cement another higher low since last Thursday morning's sizable gap higher. 

The pullback in crude is, of course, violent. But, again, an inside day is not inherently bearish within the context of the squeeze we have just seen. 

Indeed, a spirited bear market short squeeze is insufficient evidence of a major bottom in crude.

The hard part comes with the heavy lifting of forming higher low after higher low after these violent shakeouts, which is far less glamorous than squeezing some aloof shorts.