Stock indices ripped higher on Monday as tariff fears abated over the weekend. The S&P 500 (SPX) and the S&P 100 were up 1.8%, the Nasdaq and Nasdaq 100 (QQQ) popped between 2.2% and 2.3%, the S&P 400 jumped 2.5%, and the S&P 600 leapt 2.6%. Since the March 13 closing low, the SPX is higher by 4.6% in seven days and between 1.1% and 2.1% on three of those days. The SPX has broken its steep downtrend off the February 19 high and has retraced a bit more than 38.2% of the decline. The index closed right at a piece of chart resistance that begins at 5,773 (the intraday low on January 13). As we have been saying, there is a major cluster of resistance for the SPX between 5,750 and 5,825. It includes the slightly rising 200-day average and the declining 21-day exponential, both of which were recaptured on Monday; a 38% and 50% retracement of the decline; and the closing and intraday breakdown levels from January 12 and 13. Above that, the falling 21-week exponential moving average (EMA) is at 5,854 and a 61.8% retracement as well as the declining 50-day average are up near 5,900. Preliminary volume was light on the SPY (SPDR S&P 500 ETF Trust) and the QQQ, so Monday was not one of the accumulation days we are hoping to get. The SPX is close to a five-day/13-day EMA bullish crossover, which would reverse the bearish cross on February 21 when the index was still over 6,000. The QQQ is also close to getting a five-day/13-day EMA bull cross. So while more is needed, the market is off to a good recovery start. (Mark Arbeter, CMT)

February was a tough month for the stock market and a horrible month for many high-P/E growth stocks that soared in 2023 and 2024. But if you bought these names in 2023 or even just a few months ago, you likely are still far ahead. If you are ever lucky enough to have a huge "multibagger" stock (100%+) -- as coined by the famous mutual fund manager Peter Lynch -- it's always logical to peel off some shares on the way up. Selling is the hardest part of the investment business, so don't get caught loaded to the gills with big winners when they top. Nothing goes up forever -- and when stocks finally crack, things can get ugly. The indices did cut sharply into their monthly losses on Friday, as the S&P 500 (SPX), Nasdaq, and Nasdaq 100 (QQQ) all popped 1.6%, while the S&P 100 rose 1.8%. So perhaps in the short-term, the rubber band was stretched far enough. The SPX retraced 38.2% of its pullback on Friday, which was impressive. Still, most short-term technicals remain bearish, while quite a few intermediate-term indicators also are still bearish, creating a concern for 2025. For the month, the SPX fell 1.4%, the Nasdaq lost 4%, the QQQ fell 2.6%, the S&P 400 dropped 4.2%, and the S&P 600 declined almost 6%. The late-February losses included APP, which crashed 37% in eight days; PLTR, which plunged 31% in seven days; CEG, which declined 23% in seven days; VST, off 23% in six days; and CAVA, which caved 32% in seven days. For SPX stocks during the month, DECK, FMC, WST, MRNA, and CE all plunged between 29% and 35%. In the QQQ, TTD plummeted 42% in February, while TSLA, MSTR, DDOG, PYPL, and AXON fell between 17% and 26%. (Mark Arbeter, CMT)

JPMorgan Chase is one of the largest and most complex financial institutions in the United States, with nearly $4 trillion in assets. It is organized into four major segments: consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan operates, and is subject to regulation, in multiple countries.

JPMorgan Chase is one of the largest and most complex financial institutions in the United States, with nearly $4 trillion in assets. It is organized into four major segments: consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan operates, and is subject to regulation, in multiple countries.