Market Bulls Step Aside Going Into The Weekend, Bears Take The Advantage

The S&P 500 index closed sharply lower on Friday and below the 10 day moving average crossing at 1136.66 signaling that a short term top has been posted. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term.

Closes below the 20 day moving average crossing at 1124.78 are needed to confirm that a short term top has been posted. If March extends this winter's rally, the 62% retracement level of the 2007-2008 decline crossing at 1155.15 is the next upside target.

First resistance is Monday's high crossing at 1147.90
Second resistance is the 62% retracement level of the 2007-2008 decline crossing at 1155.15

First support is today's low crossing at 1127.50
Second support is the 20 day moving average crossing at 1124.78

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The NASDAQ 100 closed sharply lower on Friday and the low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

Closes below Tuesday's low crossing at 1850.0 are needed to confirm that a short term top has been posted. If March extends this winter'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.

First resistance is Monday's high crossing at 1900.00
Second resistance is the 75% retracement level of the 2007-2008 decline crossing at 1947.00

First support is today's low crossing at 1854.75
Second support is Tuesday's low crossing at 1850.00

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The Dow closed sharply lower due to profit taking on Friday and below the 10 day moving average crossing at 10,622 signaling that a short term top might be in place or is near. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning bearish signaling that at the very least the Dow is vulnerable to a pause or correction in this winter's rally.

Closes below the 20 day moving average crossing at 10540 are needed to confirm that a short term top has been posted. If the Dow extends this winter's rally, the 62% retracement level of the 2007-2008 decline crossing at 11249 is the next upside target.

First resistance is Thursday's high crossing at 10716
Second resistance is the 62% retracement level of the 2007-2008 decline crossing at 11249

First support is today's low crossing at 10,561
Second support is the 20 day moving average crossing at 10,540

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