The markets were relatively unchanged today as they wait on the Fed and big tech earnings this week. The Nasdaq and S&P both hit new all time highs and closed higher by 0.2% and 0.12%, respectively. Small caps also had a muted session with the Russell posting a gain of 0.04% - essentially unchanged on the day. The VIX on the other hand was pretty weak as it lost 3.7% to finish at $18.02.
The Nasdaq failed to gap above its previous primary uptrend, but it did break through it and close above it which means it had a failed breakdown and it now starts a new uptrend for tomorrow. The first level to watch for tomorrow will be at 24,870 tomorrow which is going to be support from its new primary uptrend (white). The Nasdaq closed at 24,887 today, just above that level, but if it were to gap below it then the 24,870 area would be resistance on a rally attempt. Assuming it opens above it, the next resistance to watch would be at 25,160 from its prior uptrend (blue) and then its primary uptrend would be resistance (from the top of that range) at 25,200.
If the Nasdaq fails to open above its primary uptrend at 24,870 tomorrow then the next support to watch on a pullback would be at 24,750-24,760 from its prior uptrend (yellow). There are supports after that, but this is likely the only one to be in play for tomorrow's session.
The S&P also failed to gap above the 7,180 level which was the area I said to watch in the previous update. It rallied right up to this area and also got rejected up there as it put in a high of 7,178.74. So it didn't reclaim that support like the Nasdaq did, but since it made a higher high it also starts a new uptrend.
For tomorrow, the first support to watch will be at 7,164 from its prior uptrend (blue). If that doesn't hold, its next uptrend (purple) will provide support at 7,147-7,148 and if there's a larger pullback the next big level to watch will be 7,109-7,113 from both its prior downtrend (yellow) and its primary uptrend (white).
If the rally continues, the next resistance to watch will be from its primary uptrend (white) at about 7,210. If it can break through this level, its last daily resistance would be at about 7,245 from its prior uptrend (orange).
The Russell 2000 once again broke just below its primary uptrend but reclaimed that support which gives it a failed breakdown and starts a new uptrend for it again. The problem here is that it becomes less and less likely that it will open above these new uptrends as it keeps breaking them. For tomorrow, its primary uptrend will be right around 2,800. The Russell closed at 2,788 today so it will need to gap up about 0.5% to open above this level. Even if it does, there would be more resistance from its prior uptrends (blue and yellow) at 2,805 and 2,810. So unless there's a gap above these levels they will act as resistance on a rally attempt. If it can gap above them or break through them, the last daily resistance to watch will be at 2,835 from its primary uptrend (white).
The more likely scenario here is that we get a pullback to its next support (purple) at 2,760. And if the Russell fails to close above its current primary uptrend (white) at about 2,800 it would start a new trend heading into Wednesday.
