US economy added more than 240,000 jobs in February indicating that the economy continues to growth even at a slower pace. Stocks, encouraged by the economy data, climbed higher for the third week with solid gain. For the week S&P 500 index closed at 1999, up 2.67%, Dow Jones Industrial Average gained 2.2% while technology laden NASDAQ composite index increased 2.76%.
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| Weekly chart of S&P 500 index |
Just as we have discussed last week, S&P 500 has risen to the 2000 psychological round number resistance level. The index has closed above its 28 week moving average and the STO momentum indicator is right at the 50 mark and rising. We expect the rally to continue but may see some pull back to retest the trend line support.
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