The markets were down again today with small caps getting hit the hardest as it closed down 0.65%. Tech was also weak as the Nasdaq closed down 0.51% with a lot of the AI momentum trades seeing sharp declines. The S&P was essentially flat, posting a loss of 0.07%. All three indexes did recover off of their lows after President Trump said he postponed a planned military attack on Iran due to requests from Qatar, Saudi Arabia, and UAE leaders. This news sent markets rallying in the afternoon as oil and yields pulled back. The VIX was notably weak today, even when markets were on lows, and it ended up finishing down 3.3% near the lows of the day.
The Nasdaq did break and close below Friday's primary daily uptrend support which now starts a new downtrend for it going into tomorrow. The first level to watch tomorrow will be from its new primary downtrend (white) at 26,100-26,110. It closed today at 26,090, just below that level for tomorrow, so there is potential for it to gap back over this new downtrend in which case the 26,100-26,110 level would become support. If it can gap over it, or break through it, then the next resistance level to watch will be at about 26,300 from its prior uptrend (purple) followed by 26,325 from its next uptrend (yellow). For now those will likely be the only levels in play for tomorrow.
The S&P on the other hand closed above Friday's downtrend that it started. However since it made a lower low, it also starts a new downtrend. Its new primary downtrend (white) will be at about 7,375 tomorrow. The S&P finished well above it today at 7,403, so it's likely that it gaps above this downtrend tomorrow in which case the 7,375 area becomes support. If it fails to get that gap up, or it breaks down through 7,375, then the next supports will be at 7,330 (orange) and 7,322 (purple) from its prior trends.
If the S&P does open above the 7,375 level tomorrow and its primary uptrend, then the next resistance levels will be from its prior uptrends at 7,430 (purple), 7,438 (yellow) and 7,460-7,465 (blue).
The Russell broke and closed below Friday's primary downtrend support, starting a new downtrend going into tomorrow. Its new primary downtrend will be at about 2,770 for tomorrow. It closed at 2,775 today, just above it. If it opens above 2,770 tomorrow then the new primary downtrend at 2,770 will act as support. If it fails to open above it, or breaks through it, then the next support to watch will be from its prior downtrend (purple) at about 2,700.
If the Russell opens or breaks above its primary downtrend at 2,770, then the next resistance to watch will be at 2,775-2,776 from its next downtrend (blue). It closed right at this level today, so it's possible it gaps over this downtrend as well in which case it would also become support. After that, its next resistance will be from the next trend (yellow) at 2,800. If it can break through this as well, the last resistance level likely to be in play tomorrow would be at 2,855-2,860 (blue - top of the range).
