The markets were down sharply this morning which was led by selling in tech as the Nasdaq was down nearly 2% at its lows. Some of that can be attributed to Apple which was down 5% at its lows on reports out of the Nikkei that its foldable iPhone was hitting engineering snags and that its release may be delayed. However, in the afternoon Pakistan's Prime Minister requested that President Trump extend his Iran deadline by two weeks as Pakistan is helping to mediate the situation. This sent stocks rallying and oil also reversed its gains for the day on hopes of de-escalation. The markets ended up finishing slightly higher with the Russell 2000 up 0.17% while the Nasdaq and S&P posted gains of 0.10% and 0.08%, respectively. While it was essentially a flat finish, it was very strong at the highs of the day and it was a big reversal off of the lows. Although the VIX also finished higher by 6.66% to $25.78. But this was also well off of its highs of $28 today.
The Nasdaq did break just below yesterday's primary uptrend support during the sell-off this morning, but it closed well above it with the rally back and it put in a failed breakdown which starts a new uptrend for it. The first support to watch tomorrow will be at 21,840 which would be a retest of today's failed breakdown (yellow). After that, its new primary uptrend (white) will be support at 21,735. If we get a continuation of this market recovery, the first resistance to watch will be from its prior uptrend (purple) at 22,270. If it can break through that level then its primary uptrend (white) would be next at 22,465 and its last resistance would be from its next uptrend (yellow) right around 22,600.
The S&P also had a failed breakdown today after it broke through yesterday's primary uptrend and closed back over it during the rally back. This also starts a new daily uptrend for it going into tomorrow. The first support to watch tomorrow will now be at 6,594 which will be a retest of today's failed breakdown (blue). If that doesn't hold, then its new primary uptrend (white) will be next at 6,565. The last support would be from its prior downtrend (purple) at 6,340-6,345 if we were to get a big sell-off.
On a continuation of the rally, the first resistance to watch will be from its new primary uptrend (white) at 6,728. After that is prior uptrend (blue) would be resistance at 6,768 and then its last resistance would be from the next uptrend (yellow) at 6,790.
The Russell 2000 did not break through its primary uptrend support from yesterday, so it doesn't start any new trends for tomorrow. The first support to watch will be from its primary uptrend (white) at 2,515 tomorrow if we get another pullback. After that, its next support will be at 2,428 from its prior downtrend (yellow) in the event of a big sell-off.
The first resistance to watch on a continued rally will be at 2,564 (purple) which it has failed to break through the last couple of days. If it can break through it tomorrow, the next level to watch will be at 2,603-2,604 from both its primary uptrend (white) and its prior uptrend (blue). This will be a big level to watch as both of those ranges intersect there.
