As Oil Moves, the Market will Move

The expected oversold bounce occurred yesterday and lasted a full 4 1/2 market hours briefly taking the market to a short-term overbought condition. The pullback that then occurred, followed by this morning’s opening pullback, will again make the market oversold. Markets tend to obsess on one item at a time and right now that one item is oil. As oil moves, the market will move. Any rise in energy prices will likely be accompanied by a rally in stocks.