as was the case yesterday, it was looking like we were headed for a somewhat flat close, but a flurry of buying late in the day pushed the indices higher into the end of the day. one interesting thing, however, was that the day’s modest gains occurred despite a strong rebound in crude prices. for those that believe, the market is technically primed for some relief to the downward pressure from last week, and as such, reading too much into the correlation between stocks and oil is dangerous.
not only did the bounce in crude not send the broader market straight back down, it also sparked a renewed interest in many of the momentum names that have led this market for much of the year, including CLF, CF, MOS, DRYS and CSIQ to name a few. the big question, of course, is if this is a sign that the narrow leadership that as been the hallmark of this market for the past several months is back in play. although many were hoping for a quick retreat for oil, the momentum in that commodity and the stocks which benefit from higher energy prices has obviously not gone away.