Mid-Session Market Comment 03-17-2014

Major U.S. market indices surged at the open, it then  pulled back, and are now maintaining most of the earlier gains.  Crimea is to leave Ukraine and join Russia following yesterday’s referendum. Both the US and EU issued travel ban for officials responsible for helping Crimea to become part of Russia immediately. President Barack Obama stressed that sanctions of clear impact on Russia are to be implemented. US congress is to pass sanction plans when it's members return from vacation. The strong rebound in the U.S. stock market today is overdone. Before the announcement of  further U.S. and EU sanctions, one should still beware of  market reversing back down. Besides, Ukraine situation is not the only negative for the market, China's economic slow down, Double Top patterns in major European stock markets , Investors Intelligent sentiment data in frothy level are all negatives.  Technically, the Dow remains in a bearish double-top pattern, if the Dow fall back below the 16,144 level again, stock market will  continue to correct down. Dow support is 16144 and resistance is 16500.