While the simultaneous expiration of contracts for stock index futures, stock index options, stock options and single, stock futures only occurs four times a year (aka “quadruple witching expiration” and that being today), two of the four major stock market indices broke their recent winning streaks. At the final bell, the DJIA and the NASDAQ gained 45 points and two points respectively; the S&P 500 and NYA closed lower. On the NYSE, volume contracted to 924 million shares.

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Weekly Technical Commentary by Art Huprich
Still Overbought ... (Revised)
Friday Morning 03/19
While the simultaneous expiration of contracts for stock index futures, stock index options, stock options and single, stock futures only occurs four times a year
(aka “quadruple witching expiration” and that being today), two of the four major stock market indices broke their recent winning streaks. At the final bell, the
DJIA and the NASDAQ gained 45 points and two points respectively; the S&P 500 and NYA closed lower. On the NYSE, volume contracted to 924 million
shares. There were 499 net declining issues, a weak reading relative to the DJIA and indicative of more selling pressure than what was evident by the DJIA and
the NASDAQ.
The stock market remains overbought on a short-term basis, as defined by some previous readings of the 10-day average of the Arms Index and the Oversold –
Overbought oscillator. While persistent “overbought” readings are bullish (they are a sign of strength), I keep “hoping” for some type of pause or pullback. I feel
this way because a pause (consolidation) or pullback would allow higher bases of support to develop, thus providing “better” stop loss points (manage risk) for
many chart patterns, which includes the major stock market indices. Does it have to happen? Of course it doesn’t. Would I like to see it occur, yes I would.

2. In front of “who knows what might happen over the weekend with the healthcare bill,” its effect on the stock market and an extension of yesterday’s report, in
which I included resistance, retracement (mathematical resistance), and target levels for the S&P 500, shown below is a nine month chart of the S&P 500. I’ve
included a very short-term rising 20-day moving average (support).
I’ve attempted to highlight some initial support levels for the SPX (1165.83), which basically “cluster” between 1150 and 1125.
Chart courtesy of Thomson Reuters.
I commented last week about the potential for a short-term counter trend move higher, by the Euro. If I had to the opportunity do it again, which I don’t, an easier
trade would have been to comment on the bullish trend of the Canadian Dollar, as defined by the CurrencyShares Canadian Dollar Trust (FXC/$98.24).
Consequently, I’ll say it now. The FXC recently completed a triple-top continuation pattern and looks higher. Based on the depth of the base that was completed,
a near-term target just under $103 can be gleaned. Initial support exists between $97.25 and $97 followed by $95.75.