Wednesday’s trading session was not a clear win for either side.
Each major index opened lower and closed in the red but near session highs.
The big three turned green in the final hour of trading but settled near flat.
- Dow Jones -0.1%
- Nasdaq -0.2%
- S&P 500 -0.2%
- Russell 2000 -0.7%
The big news of the day came from OPEC+. It surprised the market with a 2 million barrels per day production cut.
- It’s the largest production cut since the start of the pandemic.
- The Whitehouse described the move as “shortsighted.”
- Oil futures are up about 1% since the announcement
3 of 11 sectors ended the day in positive territory.
The leader wasn’t a surprise…
- Energy (XLE) +2.1%
- Healthcare (XLV) +0.3%
- Technology (XLK) +0.3%
At the bottom…
- Materials (XLB) -1.1%
- Real Estate (XLRE) 1.9%
- Utilities (XLU) +2.2%
The remaining sectors were off by less than 1% each.
While many headlines pointed to yesterday’s losses, they fail to provide perspective.
Let’s zoom in and look at the past few trading sessions…
Since closing at new lows to end Q3, buyers have been pushing prices higher day after day.
When the markets close above their open, it’s generally a victory for the bulls.
Our other signals aren’t don’t provide any additional clues…
- The VIX is holding steady near 30
- RSI levels are neutral
- The Put-to-Call Ratio is neutral also
The latest labor market data is due out today and tomorrow.
This morning we’ll be watching the 8:30 release of the latest unemployment filing numbers.
- Anything near 200K is unlikely to rattle the markets.
Tomorrow we’ll get the jobs report with the new unemployment rate.
- Right now, the strongest aspect of the economy is the labor market.
- If that changes, we’ll reexamine our outlook.
Today we remain bullish and will continue to build our season positions.
*BEAT resistance at $4.50, support at $4
*SOBR resistance at $3.25
FNGR on watch
HROW resistance at $13, support at $10
^SAVA support at $40
IMVT on watch
EVTL support at $10
ALZN resistance at $1.40
DCPH support at $17
RVNC resistance at $29
XFOR on watch
VIST support at $10
FREY support at $14, resistance at $16.50
ADEA on watch
HLIT support at $12
ARDX support at $1.40
CANO resistance at $9
SBS support at $11