Oil Spill in Gulf, $USO Trading at $41 Ceiling (Oil ETF Charts, Pentagon Video)

USO (US Oil ETF) is bumping up against ceiling resistance again, up 2.68% to $41.04.  Also an offshore oil rig exploded in the Gulf of Mexico, see the news clip below from the Pentagon. If $USO breaks out here it will rally to at least $47, which is resistance from 2007. IF there's a forceful breakdown to the 38.2/50% retracement level, a volatility hedge in some form would protect long positions (shorts, USO puts, watch oil volatility index OVX). There's also a multi-year trend decision approaching.  Charts below are courtesy of FreeStockCharts.com.  For recent posts on USO and oil click the labels.

USO 1-Year Chart, inflection point in vertex

USO since 2006, $47 2007 resistance

USO since 2007, trend inflection point.

Video from Pentagon.mil/Defense.gov

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