The markets were higher once again on Friday with tech leading as the Nasdaq gained 0.89% to close at fresh record highs. The Russell 2000 added another 0.5% and is just a hair away from its all time high of 2,817.96 that was set on April 21st. Meanwhile, the S&P also closed higher by 0.3% and reached new all time highs, but it actually closed at the lows of the day and was a pretty weak finish. The VIX closed slightly higher by 0.6% after hitting its lowest level since February 3rd.
The Nasdaq broke and closed above its prior primary resistance, so it started a new uptrend going into Monday's session. The problem now is that it will open outside of its new primary uptrend (white) tomorrow because that level will be at about 25,450 which is about 1.3% away. It's extremely unlikely to get that big of a gap up tomorrow, so the 25,450 area will be resistance on a rally attempt. For now that is the only resistance level to watch tomorrow.
On a pullback, which is the more likely scenario, the first support to watch will be at about 24,960 (orange) followed by 24,940 (yellow). If these two prior trends don't hold, then its next support will be from its prior downtrend (blue) at about 24,850. If there's a larger sell-off tomorrow, the last support likely to be in play would be from its next uptrend (purple) at about 24,625.
The S&P had a pretty weak finish at its lows of day and it had a failed breakout above its prior primary uptrend. Since it did make a higher high, it still starts a new uptrend. However, due to the very weak finish and failed breakout, there is room to pullback in this new uptrend.
The first level to watch tomorrow will be at about 7,260 which will be a retest of Friday's failed breakout (yellow). This is an area I would look to short at if it's tested tomorrow. Now if it gaps above 7,260 then that level would become support. It is possible we get that gap above it as it's only about 0.4% away. If that happens I would look to short closer to its new primary uptrend (white) which will be at 7,290-7,295 tomorrow. For now these are the only two daily resistance levels to watch.
On a pullback, the first support to watch will be at about 7,168 from its new primary uptrend (white). If that doesn't hold, its next uptrend (yellow) will be support at about 7,155. If neither of those hold and we get a larger sell-off then its last daily support likely to be in play tomorrow would be at about 7,090 from its prior downtrend (purple).
For the Russell 2000 nothing changed as it remained well within its new primary uptrend (white) on Friday. That will be the first support and resistance range to look at tomorrow. Support will be at about 2,782-2,783 on a pullback and if that breaks, its next support will be at 2,765-2,766 from its prior downtrend (purple). If the rally continues, its primary uptrend will be the only resistance at about 2,867 which would be new all time highs for it.
