Oil in Initial Correction Phase

In the aftermath of today's inventory report, nearly NYMEX oil has jumped off its morning low at 95.54 to 96.42 so far, within the larger downmove off of yesterday's high at 97.82.

My near-term work argues that the decline from yesterday's high into this morning's low represents the initial phase of a correction that should press beneath the Oct-Nov up-trendline, now at 94.00, on the way to 90.00-88.00 thereafter.

At this juncture, only a sustained hurdle of yesterday's high at 97.82 will invalidate my current outlook. ETF to watch is the U.S. Oil Fund ETF (USO).