foolstone, Excellent question but no, I’m not considering closing the XLE short/ERY long just yet as I think the energy stocks will continue lower in the coming days even if crude does stabilize & possibly mounts that relatively minor bounce I’m looking for. My confidence or read on the USO chart wasn’t strong enough to trade it and my read on the energy stocks, although they do tend to move largely in sync with crude, is still that the targets that I listed on the 60-minute charts will be hit.
Here’s an updated chart of XLE with a new support level that I just added at 60.48. XLE has been bumping along that level since the initial thrust down following the rising wedge breakdown and I’d suspect that support level will get taken out soon, followed by a quick thrust down to one or both of those price targets (green lines).

Would you consider to close XLE short position if R/R of shorting USO is diminishing? Thx.