Closing Market Comment 02-26-2014

Major indexes opened slightly lower ，trading narrowly the whole day and closed modestly up.  Strength in retail and home construction sectors provide support to today's market. Technically, the S&P 500 is still digesting the huge recent gains by trading a narrow range around the 1851 resistance level. Breaking through 1851 level and stay is very important near term. Profit-taking will ensue if it doesn't . Friday's GDP and Chicago PMI released may be able resolve the dull consolidation one way or the other.  Even though S &P 500 is still below 1851, today's action still favors a break out unless Friday's economic reports are weak.  S & P 500 support is 1818 and resistance is 1859.