It was a bloodbath for the oil stocks. 

And I'm feeling really good about having closed out my Anadarko Petroleum (APC) swing trade at $75.02 yesterday for a 2.5% profit. The alternative would have been brutal, no doubt. 

But how far can oil continue to fall? 

Today's action looks like some grisly scene out of Dunkirk where planes were just swooping in to destroy anything they could get their cross-hairs on.I actually think there, a near panic situation setting up in the afternoon, as the losses for traders not only worsened, but they accelerated to the downside. 

So what to watch going forward? 

First, keep an eye on the 20-day moving average - $USO seemed like it wanted to hold that level, but if that fails, watch the rising trend-line off of the June 2017 lows. 

Here's the technical analysis on oil:

(Click on image to enlarge)