Michael Sheldon Rising Quotations

The markets are rebounding a little after several sessions of weakness that stemmed from rising oil prices, rising fears of terrorism and a sharp decline in the dollar. Those issues have somewhat abated today, but they are issues the market will continue to face over the next few weeks. As a result, you could see more profit taking.

Over the next few trading sessions, it will be important to watch whether the stock market sells off on rising volume. If that should happen, that could mean a spring correction is on the way.

Despite terrorist events around the world, rising oil prices and a lukewarm job market, consumer spending has remained fairly strong, much better than many would have thought. But if the economic data starts to slow and oil rises above $60 a barrel, that could eat into consumer spending.

Buying enthusiasm dried up as the day progressed. Lingering worries over rising energy prices and higher bond yields may have finally caught up with the market.

The primary reasons behind the back-to-back triple digit losses for the Dow are fears of a U.S. policy of protectionism against China and rising oil prices.