The September rally paused Monday as oil and gas bounced off of their recent lows.
Oil rose above $64 in intraday trading before ending up 0.73% to $63.79 per barrel. Gasoline gained 0.7% to close at $1.58 per gallon, and heating oil jumped 1.51% to close at $1.72 per barrel.
Major averages were relatively flat Monday, but signs of anxiety emerged after the recent rally and ahead of a hefty week of economic data and a Federal Reserve policy meeting.
"We reset the bar of tolerance every week," says Art Hogan, chief market strategist at Jefferies & Co. For a while, $70 per barrel was tolerance, then $75, and now that oil dipped below $63, $64 is a little disquieting, he says."Non-traditional investors are fueling the market, and in energy in particular," says Hogan. "Momentum came into the space, and these cowboys get in and out at the same time. We're seeing some of that now." Indeed, news emerged Monday that the large hedge fund