Look how poorly the banks trade. Ever since the Fed has stated that it wants to support the dollar and fight inflation, the banks have sold off. A stronger dollar is a negative for stocks. The only feasible way to get out of this mess is for the the Fed to keep interest rates very low and inflate the heck out of the economy and lower the value of future debt payments. Oil prices are gonna go where supply and demand dictate, Fed policy isn't the driver for its moves. If the Fed is dovish, the markets will go higher, if they think they can stop the climb in oil prices by hiking rates later this year, they will kill this market.
Fed hawkishness is a negative for the stock market, i.e., negative for the rich, it is a positive for the poor and middle class. Inflation is out of control, the dollar is confetti, but that is the only way for the US to get out of the credit crisis, to print their way out. Print or die.