O is for OPEC, That's Good Enough for Squeeze

Just as the S&P 500 Index momentarily took out its January lows, a headline crossed the wires that OPEC members might be ready to cooperate on a cut of oil production. As we know, bearish overall markets tend to feature more sensitive correlations between asset classes, due to confusion and fear, and therefore stocks also spiked up with oil on the new.

Generally speaking, however, a news item rarely serves as the turning point for a durable bottom for markets. In fact, some of the best bottoms occur seemingly out of nowhere, when virtually no one is actually looking for a bottom. 

Still, the OPEC news could easily serve as some type of short-term low, which means shorts still need to have their guard up in this environment of considerable overnight risk. 

At the moment, not getting whipsawed by over-trading is a win in this tape. But, beyond that, we still need more evidence of whether the OPEC reversal is meaningful beyond an intraday scramble to cover shorts and press day-trade longs. 

The S&P 500 Index closing the cash session above 1820 may give bulls a pass until next Tuesday, after the long holiday weekend. But until the Japanese Yen really comes in, it is tough to embrace the bull case, even overnight. 

I will cover those topics and plenty more for Members in my full-length video recap after the bell.