Thursday's Market Minute: Stocks Struggle To Find Footing

Volatile trading continues this week as stocks consolidate from their recent upswing, but whether the recent move upward was merely a dead cat bounce after the worst 1Q ever remains to be seen.

Yesterday’s -4.1% decline in the S&P 500 futures contract likely did little to ease investors’ fears. The /ES has stalled near the 21-day EMA for much of the last week. A close above this level, currently near 2596, as well as above further resistance at the yearly 50% Linear Regression Channel lower line near 2633, could provide some impetus for a continued bullish move.

Russell 2000 futures were the weakest of the four major U.S. indices yesterday, notching a -5.7% slump before closing near 1070. The small-caps have been the most troubled of the major indices, as they led to the downside before the crash and have logged a 35% decline year-to-date. Is the /RTY once again providing a clue about the overall market direction?

Watch for resistance near the confluence of the previous highs and the 21-day EMA around 1180 to the upside, and for support near 1000 to the downside.

Get expert insights from market participants and seasoned traders during this time of historic market volatility at TD Ameritrade Network's Town Hall this Saturday, April 4th starting at 10 a.m. ET.