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.