Retracement level stalls the fall...

The S&P index tested the 38.2% of the move up from the Jan 3rd low at at the 2337.01 level in trading today. The low extended to 2336.45. Momentum faded on the break, and there has been a modest bounce higher.

The move higher took the price to a high 2351.21. The price has since moved back lower and we currently trade above and below the unchanged level on the day.

Drilling out to the daily chart, the index fell sharply yesterday. The > 1% decline was the first such decline in 109 trading days. Technically, the price still remains above the 50 day MA at 2327.59. A trend line connecting the lows from Jan and February also tracks near that MA line. The price has not traded below the 50 day MA since the November election.

We are currently trading up about 3 points at 2347. So support at 2337 is safe, but keep the level in mind going forward today and into the trading week. Also earmark the 2327.50 area as well in case the market starts to push the correction lower going forward.