The S&P 500 has stalled at resistance (A, B, & C) and the recent sharp ascending trendline (B) has been broken and that old support line seemed to want to act as resistance yesterday. 

                         
                        Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The Dow Transports were able to break above the February highs, but there is some resistance up in the 5400 area, and the index seems to be pulling back from that level.  There is support in the 5300 area, and pullback to this level would actually be quite healthy after the sharp rally. 

                        
                        Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

Any move down to the 20-day EMA would also not be bearish, but it is a fairly steep decline from where it is now and it would likely drag the other indices with it should that happen.  With oil hitting $108 there is certainly pressure here in the transportation stocks.

We had mentioned that we thought the Nasdaq could fill the open gap as an initial upside target, so it is interesting that the bottom of the open gap has acted as resistance so far.  Gaps tend to get filled but so far the Nasdaq has shied away in its initial attempts. 

                        
                        Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk

The action has been rather dull this week and the adage is that you should never short (bet against) a dull market.  So if we are starting some sort of pullback, barring any negative news event, I don't expect it to be anything severe.  As you can see in the seasonality chart down below, the first 7 trading days of April (a new quarter) are historically positive.

Thanks for reading!  We'll see you back here tomorrow.