Dow Jones, Nasdaq Turn Sharply Lower As Oil Skyrockets To Above $104 A Barrel

The Dow Jones Industrial Average moved lower in today’s market and led the downside. The Nasdaq composite also turned negative after closing Monday with a small gain. Stocks continued to pull lower amid geopolitical tensions, as Russia’s attack on Ukraine worsened and oil prices moved above $104 a barrel.

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Stock Market Today

The Russia-Ukraine conflict continued to get worse on Tuesday as Russian forces shelled Ukrainian cities. Meanwhile, the death toll rose as Russian forces attacked Ukraine’s second-largest city. The U.S. placed more sanctions against Russia’s government and companies. Peace talks ended Monday with no progress, but the two sides plan to resume meetings in the coming days.

As pointed out in Monday’s The Big Picture column, “Even in a global crisis, opportunities can emerge. As highlighted by the IBD Live panel in recent shows, defense, steel and natural resources stocks are rising as sanctions hit Russia, one of the world’s largest producers of oil and other commodities.”

In today’s market, indexes showed negative action with further pullbacks. At around 1:30 p.m. ET, the Dow Jones industrials were down 2.2%. The index remains well below resistance at the 200-day moving average and shorter-term 21-day exponential moving average. The Nasdaq was down 1.6% while the S&P 5oo declined 1.9%.

The Russell 2000 traded 2.2% lower. Data showed volume was running higher on the Nasdaq and on the NYSE vs. the same time on Monday, a bearish sign.

The yield on the 10-year Treasury note fell further to 1.72% from 1.99% on Friday. Meanwhile, the price of U.S. crude oil skyrocketed over 9% to above $104 a barrel.

The Innovator IBD 50 ETF (FFTY) lost 1.7% and hit resistance at the 21-day line. The growth-focused ETF was hindered by losses in Signature Bank (SBNY) and MP Materials (MP), which lost 9% each.

Meanwhile, on the upside, mining stocks outperformed including Sibanye-Stillwater (SBSW) and Southern Copper (SCCO).

Sibanye-Stillwater is among several mining stocks outperforming in recent weeks. Shares continued to bolt higher and attempted a breakout above a 19.84 cup-base entry in strong volume on Tuesday.

Outside Dow Jones: Oil Stocks Making Moves

While the stock market outlook remains in correction, there are still several setups presenting actionable trading ideas. A handful of stocks broke out on Tuesday including Rio Tinto (RIO), EQT (EQT), Northern Oil & Gas (NOG) and Ranger Oil (ROCC).

Rio Tinto, a U.K. metal ores miner, broke out from an 80.54 cup-with-handle buy point but faded from the entry in afternoon trading. Shares remain less than 1% away from the proper buy point. The stock has been rising in heavy volume recently after gaining support at the 50-day line.

Meanwhile, Ranger oil, an oil and gas exploration and production company focusing on development of energy assets in east and south Texas and Oklahoma, broke out from a 35.41 entry, but gains faded. Yet the stock’s RS line neared new highs, a bullish indicator.

Elsewhere, Northern Oil & Gas jumped past the 45.57 buy point of a cup-with-handle base in heavy volume. Shares gapped up before pulling back from earlier highs. Finally, EQT traded inside a buy range Tuesday, rising 4.8% past its buy point 0f 24.10 of a cup-with-handle base.

Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.

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