Stocks mixed: Dow, S&P 500 build on 3 weeks of gains

Stocks are showing signs of fatigue to kick off the new week, ending mixed Monday after a robust three-week rally helped trim the big losses suffered early in 2016.

Ending up were the Dow Jones industrial average and the S&P 500, which gained 0.1%, respectively — the S&P 500 nosing above the 2000 level. Finishing lower was the Nasdaq composite, which dipped 0.2%.

It has been a tale of two markets so far this year, with stocks pretty much going straight down from the first day of trading on Jan. 4 to the closing low on Feb. 11 and the rebound rally that has been ongoing ever since. After closing down 10.5% for the year at its low, the broad Standard & Poor's 500 stock index has rallied 9.3% and heads into the new week down just 2.15% for the year.

Brent crude oil passes $40 mark

The rally has been driven by a reduction in fears related to the health of the U.S. economy, which is not flashing signs of imminent recession, and a sizable rebound in oil prices. Moves by China to keep its economy growing at a solid clip has also relieved some of the angst on Wall Street, as has a feeling on Wall Street that the Federal Reserve will take a time-out and hold off on interest rate hikes for awhile.

Still, at least one Wall Street pro says the current rally has legs.

"In the absence of a catalyst that knocks the rally off course, ... there is still a lot of potential unwinding of pessimism that could still occur, driving stocks higher," Karee Venema, deputy editor at Schaeffer's Investment Research, told USA TODAY via e-mail.

U.S.-produced crude, which rallied more than 8% last week, was trading higher once again. Oil was up 61 cents, or 1.7%, to $36.53 a barrel. Hopes of a production cut by major oil producers has helped stabilize oil prices in recent weeks.

U.S. stocks hit two-month highs on Friday after a better-than-expected February jobs report -- 242,000 new jobs were created last month, the government reported -- propelled both the S&P 500 and Dow Jones industrial average to their highest closes since the second trading session of the year. The Dow also closed back above 17,000 for the first time since Jan. 5 and the S&P 500 closed at 1999.99.

Employers add better-than-expected 242,000 jobs in February

Wall Street pros say it is important that the Dow stay above the key 17,000 level and that the S&P 500 bust through 2000. Those are key levels where sellers might show up, creating what Wall Street stock chart readers refer to as "overhead resistance."

This week, global investors will be closely watching the European Central Bank's meeting on Thursday, when the eurozone central bank is expected to further push short-term borrowing rates into negative territory in an effort to jumpstart growth and boost low inflation readings.

There is a dearth of economic data on the docket this week to move markets. On Tuesday, Wall Street gets the February reading on small business optimism, on Wednesday January wholesale inventories, to name a few.

Stocks were trading lower in Europe with the broad Stoxx Europe 600 index down 0.5%. Shares closed mixed in Asia, with Japan's Nikkei 225 index falling 0.6% but shares of the Shanghai composite index in mainland China rising 0.8% after the Chinese government promised more growth-driven policies over the weekend.

Adam Shell on Twitter: @adamshell.