Technically Speaking – March

April 2, 2024

Technically Speaking:

Long Term Resistance : SP500  5300 – 5660

Long Term Support : SP500  4840 then 4550

The markets closed March on a high note, recording a 5^th straight positive month. The S&P 500 had its best 1^st quarter since 2019 and managed to hit all-time new highs during the month, along with the DOW. The Fed is still playing a large part in determining the confidence in the markets. During March the Fed came out and said they believe interest rates may have hit the peak for this economic cycle, and lower rates could be coming soon. It is still unclear when the Fed will start lowering rates, but the news of rates peaking was enough to send the S&P to new highs.

This rally is continuing to be led by artificial intelligence. This AI craze shows no signs of slowing down, if anything it is gaining steam as AI chips continue to get more advanced. However, the last the end of the month did show signs of slowing, with the major indices remaining fairly flat during the last week of trading. This could pose an opportunity to take some profits off the table and raise some cash. The S&P is getting close to its first long-term resistance level of 5300 and if it breaks through that, we could see the S&P run up to its next resistance level of 5660.

We are continuing to look for opportunities to take profits and raise cash as the markets hit these all-time highs. As long as money markets are paying around 5% interest, we are ok with taking money off the table and possibly missing out on more of the rally. We do not want to completely come out of the markets, but having this extra cash in these money market funds allows us to be patient on finding good opportunities to get back in.