After yesterday's big sell-off on increased tariffs and AI fears, the markets staged a strong bounce back which was led by small caps as the Russell 2000 closed up 1.2%. Tech was also strong with the Nasdaq gaining 1.04% and all of the mega caps were higher with the MAGS etf closing up 1.15%. The S&P also closed higher by 0.77%. The VIX closed down almost 7% and is back below $20 again. Nvidia will report earnings tomorrow after the market close and should be a big catalyst for markets.
Not much changed from a technical perspective on daily time frames today as none of the indexes broke through their primary ranges from yesterday, so none of them will start any new ranges going into tomorrow. The first support to watch tomorrow for the Nasdaq will be at about 22,825 from its prior uptrend (blue). If there is another big pullback then its primary uptrend (white) will be support at about 22,415. Meanwhile the next resistance level to watch will also be from this primary uptrend at 23,030.
For the S&P, the first support to watch on a pullback will be at about 6,858 from its prior downtrend (blue). If that doesn't hold and there is a big sell-off then its primary uptrend (white) will be support at about 6,783. The next resistance level to watch will also be from this primary uptrend which will be at about 6,918 tomorrow.
The Russell 2000 closed back over its prior uptrend (blue) but this level remains valid for now and it will be the first level to watch tomorrow which will be at about 2,651 tomorrow which is right around where it closed today (2,652). So depending on where the Russell opens tomorrow, this level could be support or resistance. If it opens above it, then it will be support and if it's below it then it'll be resistance. From there the next resistances to watch will be at 2,666 (orange), 2,673 (yellow), and finally 2,676 which will be from its primary downtrend (white). There's only one support level to watch for now which is also from its primary downtrend, and that level will be at about 2,597 tomorrow if there is a big pullback again.
