Market Rebounds From Black Friday Lows
December 7, 2021
The positive outlook has returned to the market as money looking for returns brushes off the concerns about the Omicron variant and piles back into the energy markets. Bullish headlines brought out the buyers. Saudi Arabia raised its official selling price to the US and Asian market on crude oil. The Iran nuclear talks looking less likely to produce the results many had hoped for means no Iran barrels any time soon. And a stalled US dollar rally all helped to fuel the buying yesterday and it also has more momentum today and is higher in early trading.
This rebound is a correction of the sell-off from the recent October highs. The big dump on the Friday after Thanksgiving was overdone and this rally is correcting that decline. The market volatility has been very high and that looks to continue, and it will be a rough, choppy road moving forward. These markets could rally all the way back to test the recent highs but that will not necessarily mean a continued move higher. The volatility has been high and that could continue with big market swings.
Saudi Arabia TV reported that a missile was intercepted heading towards the capital and news outlets reported that Russia is massing troops on the Ukraine border. These stories also supported the market.