After closing up 3% on the first week in March, stocks are left facing the resistance of the top trend channel line.
One main concern is with the volume accompanying the latest rally. The ideal situation for bulls would be an increase in volume as the market made strong moves higher and a decrease on down days. Unfortunately, we have the inverse happening.
As of Friday, the S&P 500 is 1% off 52-week highs. This will also be a big point of resistance as well as the trend channel.
Without more professional support (seen in increasing volume), I find it hard to believe that the market will break through resistance and make new highs. On the other hand, there are many IBD 100 stocks breakout out of good looking bases to back up the rally.
In the short-term, it looks like we will see the rally continue.
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