After reaching new all time highs this morning, the markets finally pulled back as the Russell 2000 closed down 1%. The Nasdaq also hit a new all time high this morning before an afternoon sell-off and it ended up posting a loss of 0.59%. The S&P did not quite reach all time highs during the morning rally, and it closed lower by 0.63% with the late sell-off. With the reversal in markets today the VIX bounced back and it was up as much as 10% at its highs and nearly got to $21 again. However, just after the market closed, President Trump announced that he would be extending the Iran ceasefire as talks are ongoing. This sent markets higher just after the close and the VIX ended up settling at $19.50 for a gain of 3.34%.
The Nasdaq broke and closed below yesterday's primary uptrend support, but since it has continued to make higher highs, its new trend is still higher. Its new primary uptrend (white) will be at about 24,450 tomorrow which is about 0.8% away from today's close of 24,259. It is possible that the Nasdaq gaps back over it tomorrow morning with the extension of the ceasefire as markets are up after hours. But, if it fails to gap above the 24,450 level then that area will be resistance on a rally attempt. If it can gap back over it, or break through it, the next resistance to watch would be from its prior uptrend (orange) at about 24,800.
If the Nasdaq fails to open or break through its new primary uptrend (white) at 24,450 tomorrow and we get another pullback, the next support to watch will be at about 23,925 from its next uptrend (blue). It may not get down to this level tomorrow, this is just the next level to watch. The more likely scenario is that it simply starts a new primary trend if it fails to close above 24,450. This would then start a new sideways range heading into Thursday's session.
In my weekend update I noted that we would likely get a pullback this week in the S&P to the 7,045-7,050 primary weekly uptrend support. We got there today in the afternoon sell-off as the S&P hit a low of 7,050.20. It didn't break through that weekly support, but it did break through its daily uptrend support and now it starts a new slight downtrend on a daily time frame. One thing to note is that it's already at the bottom of this new daily trend so there is room to bounce in it, especially with the ceasefire extension news after the close.
The first support level to watch for tomorrow will be at 7,040-7,045 which will be support from both its new primary downtrend (white) and its prior uptrend (yellow). The 7,045-7,050 level is also its primary weekly uptrend support. If those do not hold, then there would be more support at about 7,027 from its next support (purple).
On another rally, the first resistance level to watch will be from its prior uptrend (blue) at 7,115-7,117 and then its primary downtrend (white) would be next at about 7,132. If it were to gap above either of these levels then they would become supports on a retest.
The Russell 2000 again remained within its primary uptrend (white) so once again it doesn't start any new daily ranges going into tomorrow's session. The first support to watch will be from that primary uptrend at about 2,772. It closed at about 2,665 today, so it will need to gap up a bit to open above this primary uptrend tomorrow, and it's likely given the current after hours action. However, if futures reverse overnight and it opens below this 2,772 level then it would become resistance. The next support to watch would then be from its prior uptrend (purple) at 2,720-2,725. If the rally resumes, then its primary uptrend is the only resistance to watch at 2,870 but this is pretty far and it's unlikely to be tested.
