This morning, WTI oil is trading sharply lower by $3.74 to $105.51 a barrel. When the U.S. Dollar rallies higher most commodities will come under some selling pressure. The United States Oil Fund(NYSE:USO) is trading lower by $1.32 to $41.94 a share. Traders can watch the $40.90 area for intra-day support. This is also a likely bounce area for the USO should it trade down to this level.

Gasoline is trading at a new 52 week high this morning. The average price of gasoline at the pump is now $3.91 a gallon. The United States Gasoline Fund(NYSE:UGA) is trading higher this morning by 0.01 cent to $55.75 a share. As long as the U.S. Dollar Index continues to decline lower, gasoline could continue to rally higher.

The markets opened lower with initial weakness in oil. As the morning progressed, oil surged to the upside and the markets followed. Contrary to most retail investors thinking, weak oil is actually bad for the markets while strong oil is good. This is primarily due to the indexes being over weighted with energy and commodity stocks.

Oil bounced today after dropping sharply the last two days. After topping out around $113.00 per barrel last Friday, oil collapsed into the $105.00 range. This drop over the last two days scared many speculators into selling oil. News hit the market that Goldman Sachs Group, Inc. (NYSE:GS) had told their clients to sell.