Higher oil, lower stocks

The stock indexes gave up early gains to close sharply lower, back to the lows of the Tuesdays session. The S&P is right back at the three point support area, and the Nasdaq is just below the 61.8% fib retracement level. Volume declined slightly on the price decline, but still heavy relative to the volume of the last three months. I was hoping that the rally that looked like it was starting with the Tuesday turn-around would at least move up into the area of the moving averages. Oil is still driving higher in its ever expanding bubble. Until that pops the stock indexes will be fighting strong headwinds. The markets will obviously be thin going into the three day weekend, so not sure how much technical significance to be gained by price action until after the holiday. Even with oil and grains up today, many of the commodity related bubble stocks got hit hard today. It looks like money is running to the sidelines with many of the popular momentum plays. Bubbles do eventually pop. Now if someone would just tell that to the crude oil pit.

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