After a terrible start to the year the markets have come roaring back and the S&P is now just half a percent away from its all time high of 7,002.28 set in late January. It has been a remarkable rally back and today it was led by tech as the Nasdaq jumped nearly 2% which extends its winning streak to 10 days. The Russell 2000 added another 1.32% and the S&P gained another 1.18% as it inches towards all time highs. Meanwhile volatility continues to fall as the VIX closed down another 4% to $18.36 after briefly dipping below $18.
In yesterday's update I noted that the last daily resistance to watch for the Nasdaq would be around 23,660 which would be about a 2% rally for today. This is pretty much what we got as the Nasdaq almost hit that level into the close. It didn't break through it, so just like yesterday no new ranges get started. This same primary uptrend (white) will be the first resistance to watch tomorrow which will be at 23,870. For now this is the only resistance level to watch.
If there's a pullback, the first support to watch will be from its prior sideways range (purple) at 23,150 followed by its prior uptrend (yellow) at 23,060 and finally its primary uptrend (white) would be the last support to watch at 22,870. However these levels are all for tomorrow. If there is a pullback or consolidation it will likely trade sideways in these ranges for a bit and those support levels will be higher as time goes on which is why it's important not to short in these strong uptrends.
The S&P almost got to its primary uptrend resistance as well into the close but did not break through it, so no new ranges get started here either. Its primary uptrend (white) will be the first resistance to watch again which will be at 7,023-7,025 tomorrow and this would be new all time highs for it as well. That's the only resistance to watch for now.
On a pullback, its first support to watch will be from its prior uptrend (purple) at 6,879-6,880 and then its primary uptrend (white) comes back into play from the bottom of the range at 6,810. However, just like with the Nasdaq, it likely consolidates within this uptrend and the risk/reward for shorts get less and less favorable as time goes on.
For the Russell 2000, no new ranges are started here either as it remained well within its primary uptrend. Tomorrow the first resistance to watch will again be from its primary uptrend (white) at 2,753-2,754 which would be new all time highs for it. This is the only resistance to watch for now.
If there's a pullback, the first support to watch would be from its prior uptrend (purple) at 2,676-2,677. After that, it primary uptrend (white) would come into play again from the bottom end of the range at 2,656.
