Market Analysis for Mar 10th, 2004

Downside follow-through, for a change, seems to be the order of the day rather than marginal new lows that don't follow-through. As we speak the E-mini March S&P is at 1131.50, with a low of 1130.50. Last night in my post-market update, I sent out a daily chart of the March E-mini, which showed the confluence of several major intermediate support factors that are converging on an area between 1134 and 1132. The most important of that is the rising 54-day moving average, which is at 1132 roughly at the moment.

The fact that we're trading right at 1132 suggests that we're testing that average right now. We've already broken the first-quarter trendline, which cuts across at about 1133