BEFORE THE OPEN

While the generals (big caps) are leading slightly, the soldiers (mid and small caps) lag with lower-than-average volume. This is generally considered a sign of weakness. However, this pattern has prevailed, with some minor exceptions, since the double-bottom of January/February.

As our readers know, I have been cautious throughout the advance, not willing to be an aggressive buyer, and I remain so. As I've said before, it is not only important what stocks do but how they do it. I've encouraged traders to trade both sides of the market and cautioned long-term investors to only buy stocks with excellent balance sheets and a history of solid earnings and dividends.

At the current high levels, I don't believe it is wise to chase stocks assuming they will continue to make new highs since companies now must depend on earnings and revenues for gains rather than the Fed.

BEFORE THE OPEN

The straight line decline in the Dow Jones Transportation Average from its March high cannot be considered anything but bearish.

The focus this week will be on the stock market's reaction to a plethora of economic reports.

BEFORE THE OPEN

The 4,714 level in the Nasdaq is an important support line. If it fails to hold, the next significant support is at the 50-day moving average at 4,577 and rising. In other words, a close below 4,714 would be bearish.

THIS WEEK'S MARKET MOVERS

Monday Mar 28	Tuesday Mar 29	Wednesday Mar 30	Thursday Mar 31	Friday Apr 1
Market Focus » International Perspective » Simply Economics » International Trade in Goods 8:30 AM ET Personal Income and Outlays 8:30 AM ET Pending Home Sales Index 10:00 AM ET Dallas Fed Mfg Survey 10:30 AM ET 4-Week Bill Announcement 11:00 AM ET 3-Month Bill Auction 11:30 AM ET 6-Month Bill Auction 11:30 AM ET 2-Yr Note Auction 1:00 PM ET	John Williams Speaks 5:15 AM ET Redbook 8:55 AM ET S&P Case-Shiller HPI 9:00 AM ET Consumer Confidence 10:00 AM ET State Street Investor Confidence Index 10:00 AM ET Janet Yellen Speaks 11:30 AM ET 4-Week Bill Auction 11:30 AM ET 52-Week Bill Auction 11:30 AM ET Rob Kaplan Speaks 1:00 PM ET 5-Yr Note Auction 1:00 PM ET Rob Kaplan Speaks 4:00 PM ET	MBA Mortgage Applications 7:00 AM ET ADP Employment Report 8:15 AM ET EIA Petroleum Status Report 10:30 AM ET Charles Evans Speaks 1:00 PM ET 7-Yr Note Auction 1:00 PM ET Farm Prices 3:00 PM ET	Weekly Bill Settlement Challenger Job-Cut Report 7:30 AM ET Jobless Claims 8:30 AM ET Gallup Good Jobs Rate 8:30 AM ET Charles Evans Speaks 9:30 AM ET Chicago PMI 9:45 AM ET Bloomberg Consumer Comfort Index 9:45 AM ET EIA Natural Gas Report 10:30 AM ET 3-Month Bill Announcement 11:00 AM ET 6-Month Bill Announcement 11:00 AM ET Fed Balance Sheet 4:30 PM ET Money Supply 4:30 PM ET William Dudley Speaks 5:00 PM ET	Motor Vehicle Sales  Employment Situation 8:30 AM ET PMI Manufacturing Index 9:45 AM ET ISM Mfg Index 10:00 AM ET Consumer Sentiment 10:00 AM ET Construction Spending 10:00 AM ET Baker-Hughes Rig Count 1:00 PM ET Loretta Mester Speaks 1:00 PM ET
U.S. Equity Settlement 3-31-16	U.S. Equity Settlement 4-1-16	U.S. Equity Settlement 4-4-16	U.S. Equity Settlement 4-5-16	U.S. Equity Settlement 4-6-16

BEFORE THE OPEN

A consolidation is due and, in fact, may have already started. Initial support for the S&P 500 is at 2,020, and then the 200-day moving average at 2,017. It will take a maximum push with lots of volume to overcome what lies above Tuesday's close. Thus, I would still be selling into current strength.

BEFORE THE OPEN

At five weeks old, the current rally looks long in the tooth. With the S&P 500 up 13.3%, Jeff Saut of Raymond James notes the index is 2 standard deviations above its 50-day moving average, the most overbought reading in over a year. Oil and the U.S. dollar are also overbought.

We are due for a correction, and I think a mild one is about to occur. The target is the support zone at 2,020 to 1,990, with the 200-day moving average at 2,017.64 a bare minimum target.

THIS WEEK'S MARKET MOVERS

U.S. & Intl Recaps   |   Event Definitions   |   Today's Calendar   |    Monthly Weekly Daily Today Change Timezone Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Monday Mar 21 Tuesday Mar 22 Wednesday Mar 23 Thursday Mar 24 Friday Mar 25 Market Focus » International Perspective » Simply Economics » Jeffrey Lacker Speaks 2:45 AM ET Chicago Fed National Activity Index 8:30 AM ET Existing Home Sales 10:00 AM ET 4-Week Bill Announcement 11:00 AM ET 3-Month Bill Auction 11:30 AM ET 6-Month Bill Auction 11:30 AM ET Dennis Lockhart Speaks 12:30 PM ET James Bullard Speaks 8:30 PM ET   Redbook 8:55 AM ET FHFA House Price Index 9:00 AM ET PMI Manufacturing Index Flash 9:45 AM ET Richmond Fed Manufacturing Index 10:00 AM ET 4-Week Bill Auction 11:30 AM ET Charles Evans Speaks 12:30 PM ET Patrick Harker Speaks 6:30 PM ET   MBA Mortgage Applications 7:00 AM ET New Home Sales 10:00 AM ET EIA Petroleum Status Report 10:30 AM ET 2-Yr FRN Note Auction 11:30 AM ET   Weekly Bill Settlement James Bullard Speaks   Durable Goods Orders 8:30 AM ET Jobless Claims 8:30 AM ET PMI Services Flash 9:45 AM ET Bloomberg Consumer Comfort Index 9:45 AM ET EIA Natural Gas Report 10:30 AM ET Kansas City Fed Manufacturing Index 11:00 AM ET 3-Month Bill Announcement 11:00 AM ET 6-Month Bill Announcement 11:00 AM ET 52-Week Bill Announcement 11:00 AM ET 2-Yr Note Announcement 11:00 AM ET 5-Yr Note Announcement 11:00 AM ET 7-Yr Note Announcement 11:00 AM ET Fed Balance Sheet 4:30 PM ET Money Supply 4:30 PM ET   Banks Open, Markets Closed GDP 8:30 AM ET Corporate Profits 8:30 AM ET Baker-Hughes Rig Count 1:00 PM ET   U.S. Equity Settlement 3-24-16 U.S. Equity Settlement 3-28-16 U.S. Equity Settlement 3-29-16 U.S. Equity Settlement 3-30-16