March has kicked off with a bang on Wall Street, with bidders taking control. Shortly after 1:00 PM EST, the DJIA DOW (+775), S&P 500 SPX (+80), and NASDAQ (+235) are showing signs of life. At this point, it appears that the furious bidding of late last Friday has carried over into today’s action for the DOW, S&P 500 and NASDAQ.

Other than being the first trading day of March, there isn’t much on the economic calendar. However, there were a few releases worthy of note during the pre-market hours:

Event                                                    Actual          Projected     Previous

Markit Manufacturing PMI (Feb)         50.7                  50.8                50.8

ISM Manufacturing PMI (Feb)             50.1                    50.5                50.9

On the manufacturing front, things look to have contracted during February. Despite the soft numbers, investors are bidding U.S. stocks with vigor, driving a 750+ point rally in the DOW.

WTI Crude Oil Follows The DOW North

February was a rough month for energy bulls and the DOW. April WTI futures plunged nearly $10 per barrel due to worries over forthcoming Chinese demand. Now, traders are betting that a bottom is in. Bids are hitting the market in mass, driving intraday gains of more than $3.00 per barrel.

Here are the key numbers to watch in the WTI market:

• Resistance(1): 38% Current Wave Retracement, $47.56
• Support(1): Psyche Level, $45.00

Bottom Line: The important level to watch for April WTI is the 38% Retracement level at $47.56. This area is a premium trade location to the short. In the event that the DOW and U.S. indices continue to show strength, the $47.50 zone may come into play sooner rather than later.

Until elected, I will have sell orders in queue from $47.44. With an initial stop loss at $47.76, this trade produces 25 ticks on a slightly sub-1:1 risk vs reward ratio.