4/6/23 Are Markets Falling or Flying? Beyond the Headlines


Markets failed to pick a true direction on Wednesday.

The day had a bearish tilt as the Nasdaq logged a third consecutive day of losses.

Image by BullMarketGifts

The indexes held up better fairly well despite selling pressure. Here’s yesterday’s closing change…

  • Dow Jones +0.2%
  • Nasdaq -1.1%
  • S&P 500 -0.2%
  • Russell 2000 -1.0%

Under the surface, it was clear the bears had the advantage…

65% of listed stocks declined, while just 32% ended the day higher.

Sector Round Up

Of the 11 sectors, 4 closed higher.

The magnitude of the winners outpaced the losers. However, safer stocks were gaining while risk-on stocks faded.

Image by SafetyRisk

At the top…

  • Utilities (XLU) +2.6%
  • Healthcare (XLV) +1.7%
  • Energy (XLE) +1.5%

At the bottom…

  • Technology (XLK) -1.1%
  • Industrials (XLI) -1.3%
  • Consumer Discretionary (XLY) -2.1%


The Nasdaq finished lower. But notice it closed above support. And remember, it’s coming off of overbought conditions

In other words, some selling is warranted.

QQQ Daily Candles – Chart by thinkorswim

The chart above isn’t looking bearish in the least.

Our outlook remains cautiously bullish.

We covered our short positions yesterday for a small loss. 

Here’s what our top indicators say…


This morning at 8:30, the latest weekly unemployment filing data drops.

Tomorrow the market is closed for Good Friday … However, the Bureau of Labor Statics will still release the monthly Jobs Report.

The market will have to wait until Monday to react to the news.


^Open Position
*Low Float

*BLPH on watch
ARCT support at $24
SCYX support at $3
IFRX on watch
ALDX resistance at $10, support at $9
NAAS support at $10
DTC support at $7
VKTX support at $16, resistance at $18
^EMAN support $2
^SQSP on watch
DNMR support at $4

Secondary watchlist—float 100+ million

^IOT resistance at $18, resistance at $20
KC on watch
XERS on watch
AUPH support at $10
RIOT support at $9, resistance at $10
^IONQ support at $6
OSCR resistance at $7, support at $6
ARDX support at $4.2

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