Stock Market Index Commentary For Monday Evening

On Monday the March NASDAQ 100 closed lower and below the 10 day moving average crossing at 1214.10 thereby opening the door for additional weakness near term. The mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are neutral signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 1135.00 are needed to confirm that a short term top has been posted. If March renews the rally off November's low, the reaction high crossing at 1321.75 is the next upside target. First resistance is last Tuesday's high crossing at 1254.00. Second resistance is the reaction high crossing at 1321.75. First support is today's low crossing at 1172.00. Second support is last Friday's low crossing at 1135.00.

The March S&P 500 index closed lower on Tuesday and below the 20 day moving average crossing at 875.31 signaling that a short term top has been posted. The mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. If March extends today's decline, the reaction low crossing at 828.60 is the next downside target. Closes below 828.60 would confirm that a short term top has been posted. First resistance is last Wednesday's high crossing at 918.00. Second resistance is the reaction high crossing at 918.50. First support is today's low crossing at 857.00. Second support is the reaction low crossing at 828.60.

The Dow closed lower on Monday and below the 20 day moving average crossing at 8607 signaling that a larger degree setback into the end of this year is possible. The mid range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If the Dow extends today's decline, the reaction low crossing at 8347 is the next downside target. Closes above last Wednesday's high crossing at 8961 would temper the near term bearish outlook in the market. First resistance is the 10 day moving average crossing at 8666. Second resistance is last Wednesday's high crossing at 8961. First support is today's low crossing at 8347. Second support is the reaction low crossing at 8118.