The Dow Jones Industrials Average (^DJI) spiked up towards, and encountered resistance near the 200-day EMA. With Bernanke's testimony to Congress keeping traders on their toes yesterday, and with the March employment data to be released tomorrow, the most likely scenario for today's trading is that traders may well bide their time as they continue to ponder where we are in the recession, how much deeper it is likely to get, and when the "green shoots" of recovery are to be expected.



The broker/dealer sector (^XBD) formed a doji star as it anticipates the challenge of taking on levels of clear chart resistance. Further consolidation before rising to the challenge would not only be expected but also constructive for the sector.



Foreign exchange markets seem to have tempered their outright bearishness on the US currency, and the exchange traded fund that tracks the Euro shows some clear signs of negative divergences.



MEMC Electronic Materials (WFR) is forming a bear flag.



Best Buy (BBY) met stiff resistance as it moved up towards the 200-day EMA.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market. He specializes in market neutral investing and and is currently working on a book about the benefits of trading with long/short strategies, which is scheduled for publication later this year.

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