Stocks settled off the lows of the session, but there isn’t any confidence out there. Thus far, the year has seen the market move sideways, but the carnage beneath the surface has been masked by big names. While the so-called “fear index,” Volatility Index (VIX), is up by 14%, it is actually lower for the year.  Ironically, it is that kind of complacency that scares some market pros.

That being said, the market is losing its grip and it is uncertain where the next spark comes from.

The Scourge of Cheap Oil

What I find to be ironic is that the lower oil goes down, the market goes down as well. Yesterday, crude was down more than 4% and it continues to get crushed. I was the first to say last year during the initial plunge in crude oil that cheaper gas would not translate into economic growth, but at these levels, even the folks who have stashed extra money in coffee cans will go out to spend a little.

From the stock market’s point of view, oil is having a different impact. And, I get that there are big name stocks that weigh on averages, but there should be a counter move in consumer discretionary names.  Finally, airlines were higher, but we should see good news reflected deeper in the stock market.

Today’s Session

Moreover, it has been tough sledding. Today, we will see how the Street reacts to China, the day after they shocked the world with their currency devaluation.