Support & Resistance Cleary Defined

Broader Market Weekly Performance:
Dow +0.33%
S&P +0.10%
Nasdaq +0.58%
Russell +0.37%
VIX +3.25%
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MARKET UPDATE:
Another choppy week but the market ended up in the green. Last week's 2 sided market action continued this week and provided some good trading action.

Here is a quick rundown of the week's events:

Pros:
-Jobless claims dip, unemployment rate drops
-ISM rises

Cons:
-Crude hits $104 a barrel
-Pending home sales fall
-Gasoline prices rise

This week had fairly good economic data but choppy, 2-sided trading continued. S&P 1300 provided solid support while S&P 1340 once again kept a lid on the advance.

The market has rallied 30% in 5 months. However, I think a breather is order.There are too many unresolved issues that need to settle down before the market can power higher: The Middle East situation needs to cool down. Oil prices need to stop their vertical ascent. Libya will be overthrown. Portugal will need to be bailed out.

The unknown resolutions to these issues will keep a lid on the market in the short term. I expect S&P 1350 to hold as resistance. April is not too far away and that is when traders will start bidding up equities heading into earnings. Until April, sideways range bound trading should persist.

Areas of support remain at S&P 1300, and 1275. Resistance remains at S&P 1350.

What are your thoughts on the market? Place your comments below!

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BOOKINGALPHA UPDATE:
The return of volatility has created some great opportunities for subscribers. The AAPL Iron Condor required an adjustment to the call side this week but the puts expired worthless for full profit of 10.21% in 8 days. The call adjustment resulted in additional credit received, albeit very small, but a credit nonetheless.

A new GOOG Iron Condor was opened this week which is already reflecting a nice profit for 2 days into the trade. The trade was executed with weekly options that expire this coming Friday, March 11.

Stay tuned......happy trading!

What are your thoughts on the market? Place your comments below!

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