Happy Sunday!
We aren’t quite through with March, so no monthly candles available just yet. Nonetheless, I figured it would be helpful to quickly review the major indexes after an interesting week and a very strong Friday close.
First up, the S&P 500 ($SPX). We finally got our first weekly close over the $3,957 level that has evaded us for weeks. A monthly close above there would setup us for the next leg in the bull market.
Nasdaq 100 ($NDX). The tech index is still lagging on a relative basis with rates staying strong but has managed to hold key support (grey box over the last few weeks. A break through that downward trendline on the monthly close would be quite positive.
Dow Jones Industrial Average )$DJI). Highest monthly close ever and a relative leader among the indices. $33,747 is the next target here.
Dow Jones Transportation Average ($DJT). Suez Canal blocked? No problem for the transports. Similar story as the $DJI. Great weekly close above COVID 1.618 Fibonacci extension and 3.618 extension from the GFC. Let’s see if the monthly close can confirm.
S&P 400 Index ($MID). The mid-caps were looking quite shaky earlier in the week but had a monster close to end the week. Closing above the 4.236 GFC extension at $2,610 was important but $2,683 above may give us trouble again.
Russell 2000 ($RUT). The last of the indices we’ll review is the Russell 2000 small-caps. The index has had several whipsaws below and above major Fibonacci levels over throughout March but managed to hold strong this week. On Thursday, the Russell was down 11% from it’s all-time highs in “correction” territory. $2,167-2,200 is a must hold area for the index.
So far, so good.
Many of the major indices were a little bit shaky over the last few weeks but they’ve managed to keep their act together. The monthly close in regards to levels outlined above will be critical to determining what’s ahead.
Don’t forget above the $DXY chart we’ve been highlighting every week either. IMO, that may hold the 🔑 to where we head next.
Cheers!