Meta had its biggest one day loss of the year today as it closed down 8%, dragging the MAGS (-3.26%) lower and the rest of tech as the Nasdaq led today's market sell-off with a loss of 2.38%. Meanwhile the Russell 2000 and S&P both closed down about 1.7% and the VIX gained 8.3%. The VIX was higher by as much as 12.5% but just after the markets closed, President Trump announced that he would be extending his pause on attacking Iran energy facilities to April 6th. This sent markets higher after the close and the VIX pared some of its gains before it settled at $27.44.
Yesterday I mentioned that the Nasdaq looked the worst as it had another failed breakout. It also failed to open above both of its prior downtrend supports, so these became resistance this morning. It also got rejected at its first downtrend (blue) on the early rally attempt at the market open. It nearly got to its primary downtrend (white) but didn't break through it, so it doesn't start any new trends for tomorrow.
The first support to watch for the Nasdaq tomorrow will now be from its primary downtrend (white) at 21,280-21,285. If this doesn't hold, then its next supports will be from its prior downtrends at 21,070 (yellow) and then 20,980 (blue). If the current after hours action holds and we get a bounce back tomorrow, then the first resistance level to watch will be from its prior downtrend (blue) which is just above 21,700. If it can clear through this area then its next downtrend (yellow) would be resistance at 21,825 and then its primary downtrend (white) would be resistance right around 22,000. This is nearly 3% away so it's unlikely to get there, but if it were to break through its primary downtrend as well then its last resistance would be from its prior uptrend (purple) at 22,200.
The S&P opened and closed below yesterday's primary uptrend support, starting a new downtrend today. Its new primary downtrend is just below today's low so there will be some near term support here as that level will be at about 6,465 for tomorrow. If that does not hold then its next support would be pretty far at 6,360 from its prior downtrend (purple). Its new primary range is also really wide so resistance is very far as well if we get a snap-back rally. That resistance will be at about 6,616 and then its prior uptrend (blue) would also be resistance at 6,655.
The Russell 2000 continues to look the best for now as it did break and close below yesterday's uptrend, but it still started a new uptrend today. I mentioned this morning on X/StockTwits that its daily support would be at 2,490 which is exactly where it got to into the close as it made a low of 2,490.51. The problem is that it will need to gap up tomorrow to remain in its primary uptrend (white) which will be right at 2,500 tomorrow. If this after hours action holds it should gap up over it, but if it fails to hold it then the 2,500 area would be resistance. If we do get a big rally going tomorrow then the next key level to watch will also be from this primary uptrend at 2,565 with more resistance from its prior uptrend (yellow) at 2,570. On the other hand, if it fails to gap up above 2,500 and we get another big sell-off then the next support to watch would be from its prior downtrend (purple) at 2,405.
