Market Bulls Find Themselves Up Against Strong Resistance

The S&P 500 closed unchanged on Wednesday due to a short covering rally, which erased early session losses. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If March extends this month's rally, the 62% retracement level of the 2007-2008 decline crossing at 1155.15 is the next upside target. Closes below the 20 day moving average crossing at 1105.46 are needed to confirm that a short term top has been posted.

First resistance is Tuesday's high crossing at 1128.20
Second resistance is the 62% retracement level of the 2007-2008 decline crossing at 1155.15

First support is the 10 day moving average crossing at 1112.17
Second support is the 20 day moving average crossing at 1105.46

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The March NASDAQ 100 closed higher on Wednesday as it consolidated some of Tuesday's decline. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but are neutral hinting that a additional gains are possible near term.

If March extends this month's rally, the 75% retracement level of the 2007-2008 decline on the weekly continuation chart crossing at 1947.00 is the next upside target. Closes below the 20 day moving average crossing at 1814.58 would confirm that a short term top has been posted.

First resistance is Monday's high crossing at 1881.50
Second resistance is the 75% retracement level of the 2007-2008 decline crossing at 1947.00

First support is the 10 day moving average crossing at 1840.02
Second support is the 20 day moving average crossing at 1814.58

Today’s Stock Market Club Trading Triangles

The Dow closed lower due to light profit taking on Wednesday as it consolidated some of the rally off last week's low. A short covering rally tempered early session losses and the high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If the Dow extends this year's rally, the 62% retracement level of the 2007-2008 decline crossing at 11249 is the next upside target. Closes below the 20 day moving average crossing at 10431 would confirm that a short term top has been posted.

First resistance is Tuesday's high crossing at 10580
Second resistance is the 62% retracement level of the 2007-2008 decline crossing at 11249

First support is the 10 day moving average crossing at 10,456
Second support is the 20 day moving average crossing at 10,431

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