The four major indices (S&P, Dow, NASDAQ and Russell) finished up slightly on the week, but not before touching the S&P 800 level we talked about. The pullback late in the week feels weaker than in weeks past, the 50-MA acted as a resistance level while the 10-Day MA is acting as support.

Following a withstanding rally in week 11, week 12 economic news hinted that confidence may be instilled in the markets sooner than previously thought.
The breadth ratios on the advancing days (Tuesday and Wednesday) we’re relatively stronger than the declining days (Thursday and Friday). Monday’s action was mixed after Ben Bernanke said it’s possible the recession may come to an end this year on a CBS Television interview Sunday night. With many investors and Hedge Fund Managers sitting on the sidelines through these uncertain market conditions, bargain hunters are back on the prowl.

We usually see stocks rally into Option Expiry (the third Friday of every month) and this cycle was no different. This particular expiry is know as a Triple Witching, meaning contracts for stock index futures, stock index options, and stock options all expire on the same day only occurring in the months of March, June, September and December.