Oil, USO Topping - Market Analysis for May 29th, 2008

Wicked volatility in crude oil prices, which some people suggest is indicative of a topping process. I cannot argue with that premise; however, purely from a technical perspective the key level that must either hold or break to confirm the establishment of a near-term top is 102.51 -- yesterday's low in the US Oil Trust (AMEX: USO). Right now the weight of my technical work leans heavily to the downside, indicating that we should expect 102.51 to be broken and to trigger downside acceleration towards the 5/15 pivot low at 97.69.