I'm looking at the XMEs for a possible short here. The reason why is because they have broken the uptrend that began in early November, and are poised to break the short-term support at $32. There doesn't seem to be support now until the $30 level so that is my target. My stop-out would be a trailing stop on the black downtrend line that I have drawn.
It is important to remember that trend lines aren't magical. They merely demonstrate who is in control of the markets...the Bulls, or forces of demand, or the Bears, or forces of supply. In this situation the forces of demand have controlled the market since the beginning of November and they took the XMEs higher. Now it appears as though the forces of supply have become stronger. This dynamic is illustrated by the breaking of the downtrend line.
If the black uptrend line gets broken it will illustrate that the forces of demand are once again in control or at least equal to the forces of supply and the XMEs will start to trend upwards or sideways. Then it will be time to exit the trade.