Markets Roar Higher

The March NASDAQ 100 closed sharply higher on Wednesday and above the 10-day moving average crossing at 1878.65 as it consolidated some of this week’s decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought, diverging and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1855.36 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 the 20-day moving average crossing at 1855.36. Second support is Tuesday’s low crossing at 1850.00.

The March S&P 500 index closed higher on Wednesday and the high-range close sets the stage for a steady to higher opening on Thursday. However, stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1121.50 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 Tuesday’s low crossing at 1127.80. Second support is the 20-day moving average crossing at 1121.50.

The Dow closed higher on Wednesday as it extends this winter’s rally. 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 winter’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 10519 are needed to confirm that a short-term top has been posted. First resistance is today’s high crossing at 10687. 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 10,590. Second support is the 20-day moving average crossing at 10,519.

February gold 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 and are turning bearish hinting that the corrective rally off December’s low might have or is coming to an end. Closes below the 20-day moving average crossing at 1115.90 would confirm that a short-term top has been posted. If February extends this rally, the reaction high crossing at 1170.20 is the next upside target. First resistance is Monday’s high crossing at 1163.00. Second resistance is the reaction high crossing at 1170.20. First support is today’s low crossing at 1118.50. Second support is the 20-day moving average crossing at 1115.90.

March silver closed higher due to short covering on Wednesday as it consolidates 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 and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 17.624 are needed to confirm that a short-term top has been posted. If March extends this week’s rally, December’s high crossing at 19.500 is the next upside target. First resistance is Monday’s high crossing at 18.925. Second resistance is December’s high crossing at 19.500. First support is the 10-day moving average crossing at 17.945. Second support is the 20-day moving average crossing at 17.624.

Traders, be sure to check out the web’s first-and-only Virtual Trading Floor, offering unparalleled access into T3 Capital Management’s elite Alpha Fund trading floor!

Comment on this post below.