Let Them Eat Oil

Crude oil and indeed many energy stocks and sectors related to crude are reversing higher along with equites at the moment. 

After a weak open, dragged down by AAPL and BA primarily, the indices are either green or flattish as we near the FOMC Announcement at around 2pm EST. 

One main issue to consider is whether the apparently very bearish inventory report for crude had already been priced into the market's swoon, since we know markets can be forward-looking and, in general, a discounting mechanism. But random, volatile price action is also part and parcel of a bearish overall trend, and that includes sudden squeezes higher which eventually are doomed anyway.

The true test, in my view, would be if crude and energy stocks survive the Fed later today and into the rest of the week. We have been noting for Members some intriguing short-term chart patterns in the energy space, but bulls are showing some last-minute hesitation in terms of confirming them to the upside for a more sustained counter-trend rally. 

Also note the weakness in Treasuries today, even when stocks were near the lows of the session. Indeed, it may very well be worthwhile, in this earnings season, to view many asset classes as being under the gun for a de facto "earnings report" of their own in terms of how they react to the Fed's decision later today. 

It may all just be "noise," but clearly many markets and market players are listening to it.