The day and the week had potential. As far as today was concerned, it was yet another chance to test the incessantly firm resistance that’s capped the entire week of gains. Technical resistance was the theme of the entire week, actually making an appearance in the title of Monday morning’s Week Ahead: Limited Calendar, But Beware Technical Resistance. While “beware” sounds scarier than it needed to, given the calm movement this week, technical resistance turns out to have been exactly what the week was all about. We’re now heading out the door right in line with Monday morning’s opening levels, having revisited the same resistance (and support) levels around the 23 and 50 percent retracements seen in the chart below. Pretty tame actually, but we should be breaking the 0 or 100 percent lines no later than week after next, and very possibly sooner if markets decide to take a “lead off” ahead of the big-ticket events beginning May 1st.
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