PeakTrader.com

[arthur]

SPX rallied on lighter volume last week. Major support is at 1,178, which is the 20 week MA. Major resistance is at 1,212 and 1,218. The Fibonacci (multi-year) trading range is 1,160 to 1,253.

Nasdaq also rallied on lighter volume last week, and continues to underperform SPX. Its 10 week MA at 2,087 is major resistance. Both the 10 and 20 week MAs may together create strong resistance. Major support is at 2,000.

OIH rallied on lighter volume last week also. The 20 week MA, currently at 86, has been major support. Major resistance is around its multi-year high at 98 to 101. RSI and ULT (oscillator) are severely overbought.

I tend to believe, rotation will continue. Energy stocks pulled SPX higher recently. However, many other stocks have lagged the general market. So, if energy stocks fall, SPX may also fall. OPEC meets Mar 16th.

Next week is a heavy economic data week: Mon Personal Income, Personal Spending, Chicago PMI, and New Home Sales. Tue Auto & Truck Sales, ISM Index, and Construction Spending. Wed None. Thu Unemployment Claims and Productivity. Fri Nonfarm Payrolls, Hourly Earnings, Unemployment Rate, Factory Orders, and Michigan Sentiment.