8:00am (EST)
The stock market showed strength on Wednesday to continue this week’s seesaw action following the afternoon Fed news. As expected, the central bank stayed on course for two more rate cuts this year while revising its outlook for growth and inflation.
The Nasdaq traded up to 17,917 before ending at 17,750 (+1.4%). Near-term resistance at 17,750 was cleared and held. Key support remains at 17,500.
The S&P 500 finished 5,675 (+1.1%) with the intraday peak hitting 5,715. Key resistance at 5,700 was topped but held. Support is at 5,600.
The Dow made a run to 42,178 while closing at 41,964 (+0.9%). Resistance at 42,000 was cleared but held. Rising support is at 41,500.
Earnings and Economic News
Before the open: Accenture (ACN), Darden Restaurants (DRI), FactSet Research Systems (FDS), Jabil (JBL), Pinduoduo (PDD)
After the close: FedEx (FDX), Lands End (LE), Lennar (LEN), Micron Technology (MU), Nike (NKE), Planet Labs (PL)
<strong>Economic news:</strong>
Initial Jobless Claims – 8:30am
Philadelphia Fed Manufacturing Survey – 8:30am
Existing Home Sales – 10:00am
Leading Indicators – 10:00am
Technical Outlook and Market Thoughts
The week has been a little choppy but this type of market action can be expected during a possible bottoming (and topping) process. We did get an up Monday for the major indexes, the first in four weeks, along with last Friday’s positive session. This suggested some money is moving back into the market to at least start some nibbling from the four-week selloff.
While this was a bullish start, key resistance levels held and was followed by a pullback on Tuesday. Downtrend channels remain in play for the blue-chips and the broader market while the choppy action this week has helped Tech and the small-caps.
We were looking for the Volatility Index (VIX) to get below 20 this week and it was nice to see it come following the Fed update. Yesterday’s low tagged 19.42. The next hurdles for the bulls are at 18.50 and the 50-day moving average followed by 17.50.
Lowered resistance is at 22-22.50.
<img class=”alignnone size-full wp-image-46075″ src=”https://marketmoversreport.com/wp-content/uploads/VIX_2025-03-19_18-49-00.png” alt=”” width=”1479″ height=”894″ />
The Nasdaq has been rangebound between 17,500-18,000 over the past eight sessions. There has been more stretch to the downside with the monthly and yearly low at at 17,238 from the prior Tuesday. A close below 17,250 could lead to selling pressure down to 16,750-16,500. The 16,200 level would represent bear-market territory (-20%) for the index.
Closes back above 18,000 would indicate a possible retest towards 18,500 and the 200-day moving average.
<img class=”alignnone size-full wp-image-46076″ src=”https://marketmoversreport.com/wp-content/uploads/IXIC_2025-03-19_18-43-50.png” alt=”” width=”1479″ height=”894″ />
The S&P has been testing 5,700 to the upside and 5,500 on the downside over the same time period. There has been a little stretch above 5,700 by five and 15 points this week with the 2025 low at 5,504. A close below key support from mid-September at 5,500 would likely lead to a further fade towards 5,400-5,200.
We would like to see backup resistance at 5,750 and the 200-day moving average cleared and held ahead of the weekend.
<img class=”alignnone size-full wp-image-46077″ src=”https://marketmoversreport.com/wp-content/uploads/SPX_2025-03-19_18-45-04.png” alt=”” width=”1479″ height=”894″ />
The Dow has traded in a seven-day range between 40,500-42,000. We talked about stretch down to 40,000 and prior support from mid-September if 40,500 and the March 13th low at 40,661 fails to hold.
Multiple closes, or a solid breakout, above key resistance at 42,000 and the 200-day moving average could easily lead to a gap up towards 43,250.
<img class=”alignnone size-full wp-image-46078″ src=”https://marketmoversreport.com/wp-content/uploads/DJI_2025-03-19_18-46-38.png” alt=”” width=”1479″ height=”894″ />
The Russell 2000 continues to show a death cross in play and one that is close to becoming official. This technical pattern often gets lower lows in play with this month and yearly bottom at 1,894. A close back below 2,050 could easily lead to a retest down to 2,000-1,900.
The close above key resistance is 2,075 was slightly bullish and something we also wanted to see at some point this week. However, the more important hurdles are at 2,135 followed by 2,200 and the 200-day/ 50-day moving averages.
<img class=”alignnone size-full wp-image-46079″ src=”https://marketmoversreport.com/wp-content/uploads/RUT_2025-03-19_18-47-46.png” alt=”” width=”1479″ height=”894″ />
Nothing is a given until it is proven and the bulls still have plenty of work to do before we would get aggressive with long positions. We do think there will be plenty of opportunities for short-term profits, however, and we will continue to monitor both bullish and bearish setups.
