Oil Starting To Weaken, Until Report Released

If I had written this post a few minutes earlier, I would have said that oil was breaking down further, below the $129 level. But then a report on crude inventories hit the wires and showed a big drawdown in supply. This caused an immediate sharp spike higher in oil, such that prices are now north of $131 again.

This also caused a brief hit in the overall indexes, which were starting to bounce higher. Q1 GDP was revised higher this morning, up to +0.9% from +0.6% originally. While this growth is still sluggish, it is getting further away from the recessionary fears with which the media was fixated.

Asian markets were higher across the board overnight. The dollar is also higher today vs. both the Yen and the Euro. This is weighing on gold and material stocks a bit. And the 10-year yield is spiking above its 50-day average, hitting its highest level of the year at 4.10%.

I remain constructive on the markets, especially following what has been a nearly 5% pullback in the S&P 500. I put a little money to work yesterday, and will look to use further upcoming weakness to put more cash to work.