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 VIX slid lower once again
- RSI levels are nearing overbought, the Nasdaq is already there
- The Put-to-Call Ratio is neutral
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.
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