Oil Reverses Lower, Stocks Rebound

The market bounced back from its early lows this morning, after oil peaked early and faded as the day wore on.

After briefly touching $139 early this morning, oil reversed all of its gains and closed below $134. That's pretty bearish action, although follow through is key. We have yet to see anything that can knock oil down for more than a day or two.

Tech stocks led the way today, after RIMM rallied big time, GOOG finished positive, and AAPL reversed its early declines to close just shy of $177. The smartphone plays continue to impress.

Brokers were the strongest group on the day, led by LEH. GS reports earnings before the open tomorrow. I will go out on a limb and say that I bet they beat the consensus estimates.

The ARMS Index was above average at 1.11 at the close; the CBOE put/call was also above average at 0.93; and the ISEE was around average at 139. Sentiment has grown a bit more bearish in recent weeks, such that it would not be surprising to see the market continue to rally to keep bearish investors on their toes.