USO Breaks its Upward Trendline...Finally

The moment that many investors, and all consumers have been waiting for has finally come, the possibility that oil could finally be topping out. Today the United States Oil ETF (USO) broke its upward trendline that was set back in February. In order to hold the February trend, USO would have needed to hold the $110 mark. Whether or not this will lead to a significant drop in oil, or a sideways trading range remains to be seen. Either way, the break of this trend puts significant doubt in investors and traders that the rally in oil can continue.

The best way to play a potential drop in oil is the MacroShares $100 Oil Down ETF (DOY), which tracks the inverse price of crude.