The market was anticipating the long awaited tariff ruling by the Supreme Court today but they ended up delaying it with the next potential date for a ruling to be on January 14th. When the delay was announced this morning the markets initially fell, but quickly shrugged it off and resumed the rally. After lagging badly yesterday, tech was the leader today with QQQ gaining 1%. Meanwhile IWM and SPY both hit new all time highs again and closed up 0.76% and 0.66%, respectively. With today's strong rally the VIX closed down 6.21%. Next week earnings season will also kick off with big banks reporting (BAC, C, GS, JPM), so earnings will be another catalyst for markets along with the potential tariff ruling.
IWM today did have a pretty strong finish but it also had a failed breakout above its last daily uptrend which starts a new trend for it. Since it did put in a higher high, the new trend is still higher. So despite it being a failed breakout, there's not really anything to be concerned about as long as there's no significant gap down on Monday. The first support level to watch on Monday if we do get a pullback will be at about $259.40 (purple) from its prior uptrend. After that, the new uptrend that it started today will provide support at about $258 (white), and the last support level to watch would be at $257.25 (yellow). Meanwhile resistances to watch will be at about $262 (yellow), $263.35 (white), and $264 (purple).
QQQ, which led today, put in a strong failed breakdown on the daily. It opened below its uptrend support in the morning but quickly broke through it and finished well above it. This starts a new uptrend for it and on Monday we will need to see it open above the $625.75 retest support (purple) for it to remain bullish. Given that it closed at $626.65 - the odds are that it will open above it, in which case that $625.75 area will be support on a pullback. Now if it does gap down on Monday below that $625.75 area then the next support to watch would be at about $620.35 from its new uptrend (white). The next resistance level to watch, also from the new uptrend, will be at about $631.75 for Monday.
For SPY the same uptrends remain intact that it has been in recently so nothing has changed technically for it on daily time frames. The potential bearish divergence that was setting up also did not play out as there was never any continuation of Wednesday's pullback to confirm it. The first support level to watch if there's a pullback would be at $686.35 (purple) from the retest of last week's failed breakdown. After that there would be more support around $685 from its new, primary uptrend (white).
