Markets continued their rally back with the Nasdaq leading the way, posting a gain of 1.26%. The S&P gained another 0.81% while small caps were the laggard but the Russell 2000 still posted a gain of 0.41%. All eyes were on Nvidia as they were set to report earnings after the close and they posted another strong quarter with beats on the top and bottom lines. The market was pricing in a move of $11.43 either way for the report, and NVDA is currently only up about $2. We'll have to see how it holds up in tomorrow's session. The VIX got crushed again today, losing another 8.29% as it is now back under $18.
The Nasdaq broke and closed above yesterday's primary uptrend, so now it starts a new uptrend. But it's already at the top of this new uptrend so there is risk of a pullback into the end of week unless it can gap above it tomorrow or rally and break through it. Resistance from its new primary uptrend (white) will be at about 23,225 tomorrow. It closed at 23,152 so it doesn't need a huge gap up to open above that level tomorrow, but if it doesn't then that level will be resistance. If it does gap or break through it, then the next big resistance will be from its prior uptrend (purple) at about 23,460. Supports to watch on a pullback will also be from its prior uptrends at about 23,055 (yellow) and then 22,920 (purple). If that doesn't hold then its new uptrend will come into play as support at about 22,640.
The S&P also broke and closed above yesterday's primary uptrend, starting a new uptrend going into tomorrow. And just like with the Nasdaq, it's already at the top of this new range so there's also risk of a pullback here. Resistance from its new uptrend (white) will be at about 6,960 tomorrow. It closes at 6,946 today so if it can gap above 6,960 tomorrow then that level will become support. On a pullback, its prior uptrend (yellow) will also act as support which will be at about 6,920. If there's a big sell-off then its prior downtrend (purple) will be support at 6,840 followed by its new uptrend at 6,832.
The Russell 2000 which lagged today remains in its primary downtrend and all of its prior uptrends are still valid so there are a few levels to look at again for tomorrow. The first resistance will be from its primary downtrend (white) at 2,674 followed by its prior uptrends at 2,676 (orange) and 2,682 (yellow). The first support to watch on a pullback will be from its prior uptrend (blue) at 2,657. Then if there's a big sell-off its primary downtrend (white) will come into play again at about 2,595.
