It is a seesaw session with major indices giving up earlier gains. The S&P 500 continues to struggle to surpass the 4,600 level. The problem is the market needs another catalyst to move higher.

Energy is taking it on the chin today and Consumer Discretionary - helped by homebuilders - is the best performer.

Crude oil is trading at a five-month low despite the draw in crude and the production decline.

This morning’s Department of Energy (DOE) data showed a large 4.6mm barrel crude draw down, its largest in 3 months.

DOE

• Crude -4.63mm, consensus -1.00mm
• Cushing +1.83mm
• Gasoline +5.42mm, consensus +700k
• Distillates +1.27mm, consensus +1.00mm

Does crude oil plunge like this in a ‘strong’ economy? 

This is a huge red flag.