We gapped up slightly on the prospect of lower oil, but oil didn't stay down for long. The NASDAQ carved out a lower low by mid-morning and tried to correct. When it ran into the down sloping 50 SMA on the 15 min. time frame it stalled and swooned, closing on its lows. Transports took a hit on higher oil with leadership provided by airlines (CAL and UAUA tested recent range lows). Energy and commodities were the winners once again on the positive side.Volume was tepid and will likely stay in contraction mode until the FOMC policy statement on Wednesday, notwithstanding any major catalyst. Keep an eye on USO as it could test its pivot high any time now.
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