All Eyes On Crude And The United States Oil Fund

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

United States Oil Fund LP USO shares were trading lower by $1.00 (5 percent) at $18.62. The ETF, which tracks the price of crude oil futures is giving investors a case of whiplash over the last two trading sessions.

After a $1.00 rally on Tuesday, the issue opened lower and never looked back. In the early part of trading session, the broad market did its best to shrug off the decline as the S&P 500 index futures matched its five-day high (2046.50), reaching 2046.25 before nosediving under 2040.00.

Over the next few days, technicians may be focusing on the $18.30 level. The reason for that being is the level represents a 50 percent retracement from its multi-year low ($16.30) to the recovery high from Tuesday's session ($20.29).

On many occasions, when there is a large move in one direction in a stock or commodity, there is often a countermove. The countermove may determine whether or not a new trend has emerged or the current one will continue.