There was a little optimism in the air last night after the market bounced back from the pounding it took on news of increased oil supply and some progress in the Greek bailout deal. We had finished strong on Thursday and futures were perky overnight, but then news hit that Italian banks were now under review, and another cycle of worries about European sovereign debt set in.
A number of bulls seem convinced that additional crude supply is going to crush gasoline and oil prices and prove to be a major boon to consumers and the economy. Oil ended up doing little today, and I don't think we can be all that certain that it is definitely going lower and staying there. Oil has never just been a case of supply and demand.
Plenty of headlines right now are pushing the market around, and that is likely to continue. I suspect we will see at least two or three more rallies and reversals on headlines about Greece, and then if that is ever resolved, we'll hear about Italy, Spain, Portugal, Ireland, etc.
Earnings season is coming up soon, hopefully allowing focus to return to individual stocks and less on macro matters, and that will be refreshing.