4/4/23 OPEC Cuts, Oil Spikes, Markets Mull


Before the opening bell on Monday, the markets got a surprise from OPEC+. 

Its members and Russia have “voluntarily” cut crude oil production by about 1.7 million barrels per day. That’s nearly 2% of the global supply.

Image from Wikipedia

According to a press release, the cuts are scheduled to stay in effect until the end of the year.

  • The price of Crude Oil soared about 8% to $80 per barrel
  • That’s its highest level in nearly a month.

Markets digested the news throughout the day. The open was mixed, and the close was mixed. The indexes followed suit…

  • Dow Jones +1.0%
  • Nasdaq -0.3%
  • S&P 500 +0.4%
  • Russell 2000 -0.0%

Listed stocks were practically split down the middle, with 51% advancing and 47% declining.

Sector Round Up

The bulls had the advantage, with 7 of 11 Sectors ending higher.

At the top…

  • Energy (XLE) +4.5%
  • Healthcare (XLV) +1.1%

At the bottom…

  • Utilities (XLU) -0.7%
  • Consumer Discretionary (XLY) -0.9%
  • Real Estate (XLRE) -0.9%


The Nasdaq has likely reached a turning point.

The 10-day RSI is flashing overbought, and history tells us a turn is now very likely.

QQQ Daily Candles – Chart by thinkorswim

As you can see from the second arrow, not all downturns are dramatic.

Markets can move up, down, or sideways. It’s easy to forget about sideways.

Here’s a recap of our top indicators…


The market has a remarkably bullish tilt in the first week of April.

And the last day before Good Friday is extremely bullish … The Nasdaq has logged gains in 20 of the past 22 years.


^Open Position

ARCT support at $24
SCYX on watch
INZY support at $5, resistance at $6
ALDX resistance at $10, support at $9
NAAS on watch
DTC support at $7
VKTX support at $16
ACCD support at $14
GATO on watch
^EMAN support $2
^SQSP on watch
DNMR support at $3, resistance at $4
^AI support at $30
APLS support at $70

Secondary watchlist, float 100+ million

^IOT resistance at $18, resistance at $20
KC on watch
XERS on watch
AUPH support at $10
RELY support at $17
RIOT support at $9, resistance at $10
^IONQ support at $6
OSCR resistance at $7
ARDX support at $4.25

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