"The March NASDAQ 100 closed lower due to profit taking on Tuesday. The high-range close sets the stage for a steady to higher opening when Wednesday's night session begins trading. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 3400.09 are needed to confirm that a short-term top has been posted. If March extends this year's rally, monthly resistance crossing at 3668.00 is the next upside target. First resistance is Monday's high crossing at 3493.50. Second resistance is monthly resistance crossing at 3668.00. First support is the 10-day moving average crossing at 3429.30. Second resistance is the 20-day moving average crossing at 3400.09.
The March S&P 500 gapped below initial support marked by the 10-day moving average and closed lower for the second day in a row on Tuesday. Concerns over an improving economy could cause the Federal Reserve to reduce its QE 3 stimulus. The low-range close sets the stage for a steady to lower opening when Wednesday's night session begins trading. Stochastics and the RSI are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1777.20 are needed to confirm that a short-term top has been posted. If March renews this year's rally into uncharted territory upside targets will be hard to project. First resistance is last Friday's high crossing at 1805.50. Second resistance is unknown. First support is the 20-day moving average crossing at 1777.20. Second support is the reaction low crossing at 1769.00.
The Dow closed lower due to profit taking on Tuesday. An economist survey forecast that the U.S. added 181,000 jobs to nonfarm payrolls last month and that the unemployment rate fell to 7.2 percent, which matches a five-year low. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. If the Dow extends the decline off last Friday's high, the reaction low crossing at 15,672 is the next downside target. If the Dow renews this year's rally, upside targets will be hard to project. First resistance is last Friday's high crossing at 16,174. Second resistance is unknown. First support is today's low crossing at 15,859. Second support is the reaction low crossing at 15,672".
Source: INO.com
