But now what do we do with oil? I suppose I was correct when I said a week or so ago that everyone scoffed at the move in oil when Mr. Chavez decided to play games and that we should pay attention to the reaction to the news (which was positive). But I was wrong when I believed late last week that the move was close to being over.

What I find amazing is that no one believes oil can go to $120 or $130 or whatever. They scoffed a week ago, and they are scoffing now.

Yet a few months ago when oil got to $100 there were all sorts of cries for much higher oil. Now everyone is convinced that the slowing economy is sure to take oil back down. It's only up on geopolitical factors, they tell us.

They might be correct, but I know I find the change in sentiment from a few months ago considerable. Why is it that everyone is so keen to tell us the bottom in the stock market is in, and the recession is already priced in, yet oil clearly must come down based on a slowing economy?

So who is right? Stocks or Oil?

In fact, as long as we're looking at economic stuff, what about copper? Everyone is all over the base in natural gas, but have you checked out the weekly chart of copper lately?

So either the economy is humming right along and all this talk of a slowdown from all these companies is false, or there is something else at work here. I am not an economist, and I am surely not a fundamental strategist, but it seems to me that the money from all that Fed easing is not finding its way into the stock market, but rather into the commodity market.

But that's okay; just ask the bulls. Heck, I'm sure today's CPI figure won't show any inflation. It never does. It is amazing how commodity prices can rise as they have and yet the inflation numbers remain tame. Must be all those low-priced flat-screen TVs that Best Buy (BBY - commentary - Cramer's Take) isn't selling that keeps inflation so low!

As for the stock market's action yesterday, the action was poor. There is no other way to describe it. But it was poor when the market was up, too. It was poor because it lacked volume. And it was poor because the financials refused to participate.

On the flip side, the breadth remained positive despite the lack of participation from the financials.

That triangle still exists in the S&P, but with each passing day, any breakout becomes more suspicious. We will soon be too far into the apex of the triangle for it to be meaningful.

Overbought/Oversold Oscillators

For more explanation of these indicators, check out The Chartist's primer.