Mike Wilson

Market Overview

Today's U.S. stock market saw relatively flat movement, with overall sideways consolidation and low trading volume as investors continued to search for direction. The S&P 500 index reached a key resistance level as expected, marking the first major test in its recovery process.

S&P 500 (SPY) Analysis:

The SPY 10-minute chart shows a slight uptick at the open, followed by narrow fluctuations throughout the day, ultimately closing slightly higher. On the daily chart, the market appears to be in a wedge consolidation pattern. After a 10% pullback, the S&P 500 has started to recover. Yesterday, it touched a key resistance level, and today it closed slightly above it. If the market breaks through and holds above this resistance, there could be further upside potential.

Next Focus Point:

The 50% Fibonacci retracement level is near a technical gap-fill area. If the market continues to push higher, this could be the next test zone. A 10% pullback is still anticipated, so it's important to watch for potential declines from higher levels.

Technical Analysis - Dow Jones Industrial Average (DJIA):

The Dow Jones climbed last week, gaining 1.42% last Friday, extending its bullish momentum. Currently, the index is testing the key resistance level at 42,764. A breakout above this point could lead to a further challenge of 43,402.

From a technical standpoint, the 14-period RSI has moved above 50, signaling potential positive momentum. Additionally, historical data shows that since 1950, U.S. markets have typically performed well during the final two weeks of March.

If this trend holds, the Dow may continue to rise or at least maintain most of its gains since bottoming at 40,665 on March 13.

Key Strategy:

As the rebound unfolds, keep an eye on stocks within your portfolio. Consider selling stocks that have already rallied, as the strength of this rebound may be limited.

Wall Street Warriors Closing Report

Today marked an important event for the market, as Federal Reserve Chairman Jerome Powell held a press conference at 2:30 PM. Following the announcement, the market surged. Powell revealed plans for two interest rate hikes this year, each by 0.25%. Although the increase is modest, the market reacted positively because it provided a clear policy direction, reducing uncertainty. Markets and investors generally dislike uncertainty, so this move helped stabilize sentiment and boost investor confidence. The 10 year U.S. Treasury yield and interest rates are expected to decline in the near future, signaling a key bullish indicator for short-term investors.

Equity indices rose across the board. After the Fed statement, the market spiked, then pulled back around 3 PM before stabilizing and rebounding into the close, signaling a bullish short term sentiment.

The Nasdaq retreated after hitting resistance at 17920
Watch for SPY to break above 570 and close above that level, which would form a short-term V-shaped bottom pattern.
The Dow Jones has already formed a short term V shaped bottom pattern.
In yesterday’s closing report, we advised against panicking over the short squeeze. Following today's Fed meeting, market sentiment has improved, suggesting a clear short-term bullish trend. Investors should take advantage of pullbacks to secure higher profits.

Trading tip: ✋ Avoid the supermarket mindset in trading! 🛒

1. A stock down 50% isn’t a bargain—it’s weak. People are selling for a reason.

2. Cheap stocks aren’t better just because you can buy more shares.

Think in terms of supply & demand: strong stocks rise because people want them. 📈

A stock that doubled can double again. A stock down 50% can drop another 50%. 📉

Ditch the bargain-hunting mentality—it’ll save you money! 💰