The day started gaping up and rallying to the resistance at the 30 day simple moving average (SMA). The resistance was tested twice and the retracement sell off ensued. The day ended in red but almost flat. Volume was high and broke trend. It looks like a normal retracement movement after a large rally. Fibonacci suggest price will print 734 or 721 on the S&P 500 index before the rally continues onward.

The Financial Sector showed strength early in the day on Barclays Plc (BCS) joining the “me too” profit club and by news that the Financial Accounting Standards Board (FASB) proposed to allow some relaxation on mark-to-market accounting rules. The Market mood was also improved by comments from Federal Reserve Chairman Ben Bernanke during an interview on “60 Minutes” on Sunday stating that the U.S. recession could probably come to an end this year. The only downer in the day was American Express (AXP) news that the number of people struggling to make credit card payments grew in February. The S&P 500 printed a Bearish Doji.

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