SPX Technical Analysis March 24-27, 2014

FOR 3/21 SPX resistance, pivot & support
Resistance R3 1899.68, R2 1891.82, R1 1879.17
Pivot Point 1871.31
Support  S1 1858.66,  S2 1850.80, S3 1838.15

For Weekly 3/21-3/24 SPX weekly resistance, pivot & support
Resistance R3 1927.21, R2 1905.59, R1 1886.43
Pivot Point 164.89
Support S1 1844.89, S2 1823.27, S3 1803.73

The USA stock market last week started the week gapping up after last Friday’s decline to SPX 1840. The rally carried it into FOMC Wednesday to SPX 1874. Then right after the FOMC statement was released the market dropped to SPX 1850. Another rally carried the market to match the all time high at SPX 1884 on Friday. Then right after the open Techs sold off and the market pulled back again. Another choppy week, only this time to the upside. For the week the SPX/DOW were +1.45%, the NDX/NAZ were +0.7%, and the DJ World index rose 0.7%. Economic reports for the week were positive. On the uptick: NY/Philly FED, capacity utilization, industrial production, NAHB, housing starts, building permits, CPI, leading indicators and the monetary base. On the downtick: existing home sales, and weekly jobless claims edged higher. Next week: Q4 GDP, Durable goods orders, and more Housing reports.

Short term support is at the 1841 and 1828 pivots, with resistance at the 1869 pivot and SPX 1884. Short term momentum declined to oversold after hitting quite overbought on Friday. The short term OEW charts have been vacillating of late, ending the week positive with the reversal level still at SPX 1869.

As noted above the market activity from the Minor wave 1 high at SPX 1868, and even before, has been quite choppy. It does look like Minor wave 2 bottomed recently at SPX 1840. The rally from that low, however, is also a bit choppy: 1874-1850-1884-1863. Either the market is setting up, with subdividing waves, for a surge higher. Or this week’s rally is corrective as well, and a retest of SPX 1834-1840 is next. With the SPX hitting its high right after the open on Friday, and then pulling back during options expiration. We lean towards the former rather than the latter. Once SPX 1884 is cleared we will likely label the two recent highs as Minute i at SPX 1874, and Micro 1 at 1884.

Support for the SPX remains at 1841, 1828, 1820 and then 1800, resistance at 1869 and then 1884.Best to your trading what sets up to be a wild week ahead. 

FOREIGN MARKETS

The Asian markets were quite mixed on the week losing 0.4%.

The European markets were all higher on the week gaining 2.3%.

The Commodity equity group also rose gaining 4.3%.

The DJ World index is still up trending and gained 0.7%.

COMMODITIES

Bonds continues to downtrend losing 1.0% on the week.

Crude appears to be down trending but gained 0.6% on the week.

Gold appears to entering a downtrend and lost 3.5% on the week.

The USD set up a positive divergence for a potential uptrend, it gained 1.0% on the week.

NEXT WEEK

Earning Calender March 21-24, 2014

Monday: the NY FED at 8:30, Capacity utilization at 9:15, then the NAHB housing index at 10am. Tuesday: Housing starts, Building permits and the CPI. Wednesday: the Current account deficit and the FOMC ends it meeting. Thursday: weekly Jobless claims, existing Home sales, the Philly FED and Leading indicators. Friday: Options expiration. There will be a press conference on Wednesday at 2:30 with FED chair Yellen. On Friday: FED governor Stein gives a speech after the market close. Best to your weekend and week!

Take a look some market indicator charts- Click all charts

$SPX - 60 min
SPX DAILY CHARTS
QUICK LOOK ALL MAJOR INDEX WEEKLY
$SPX with component chart 
$VIX
$CPC daily
QQQQ Daily 
COMPQ

For the latest updates on the stock market, visit, 
http://daytradingstock-blog.blogspot.com