Tech lagged for most of the mont2h but did have a rally into the end of the month to finish positive. The Nasdaq closed out January with a slight gain of 0.9% while the S&P gained 1.4%. The Russell 2000 was the big winner as it gained over 10% at its highs, however it gave back half of those gains over the past week and it closed up 5.3% for the month. Metals were big winners as Gold gained 13% for the month while Silver closed higher by 20%. This includes the big drops that they saw on Friday with Gold falling over 10% and Silver falling as much as 36%. Bitcoin continues to struggle as it lost about another 4% for the month.
For the Nasdaq there are a lot of monthly levels to watch. It closed out January at 23,461 which is right around where its monthly uptrend supports for February will be. It did close above its prior monthly downtrend last month and start a new uptrend, but it was not a strong enough finish and there is risk of gapping below these uptrend supports tomorrow. Its new uptrend support (white) will be at about 23,435 followed up by its previous uptrend (purple) which will be right around 23,400. If it does open above them, then those levels will act as support. Nasdaq futures are currently down about 1% so assuming this holds overnight, then it would gap well below those supports. If that happens, those levels become resistance. If it does manage to recover overnight and open above these levels, then its next resistance would be pretty far around 25,175 (purple) followed by its primary uptrend which is right around 25,500.
If it does have gap down scenario, or even if it breaks through its first two uptrend supports, then the next supports to watch will be from its prior downtrends. The first downtrend (blue) will be at about 23,150 with the next support just below it (yellow) at 23,085. After those levels, the bottom of these same downtrends will act as support and those levels are pretty far at about 21,075 (blue) and 21,000 (yellow).
The S&P put in a failed breakdown in January as it opened below its primary uptrend support but rallied back to close above it. This starts a new uptrend for it and it's a pretty narrow range. The support level to watch from this new uptrend will be at about 6,860 while resistance from it will be at about 7,080. If it clears through that 7,080 area then is prior uptrends will come into play as resistances at about 7,120 (blue) and its next resistance (yellow) would be further away around 7,250. For now it only has that one support from its new uptrend. If it pulls back and breaks through 6,860 support then we'll have to wait and see how it closes out the month for a new trend.
The Russell had a pretty strong finish for the month even though it gave back around half of its gains. But it did have a failed breakout on monthly timeframes. Since it did make a higher high it still starts a new uptrend. The first resistance to watch will be on a retest of the failed breakout (purple) at 2,755 and then there will be more resistance just below 2,800 from its new uptrend. Meanwhile, the first support to watch will also be from its new uptrend at about 2,490 and then its prior uptrend will provide support at 2,465.
