Crude oil has gone WAY further than we thought this week - for obvious reasons.
Here's an updated daily chart of crude:
Our wave count was apparently "off" and this bounce in crude has been a painful ride in the short-term.
However, we still view crude as having unresolved business on the downside. The daily chart above shows a potential "abc" upside correction over the last couple of weeks with resistance coming in at $52.60 to $53.65 - the first of those two levels having been tested in the overnight session last night.
If we are correct, crude will top out and then move all the way back down to below $47. As painful as it is, we're staying with the short crude trade via shorting UCO.