Marvell Technology (MRVL) closed up 32.5% today after Nvidia's CEO Jensen Huang called it the next trillion dollar company. SOXX closed up almost 6% while SMH gained 4% on the back of Marvell and other semiconductor stocks today. But despite the strength in those names today, the Nasdaq finished flat with a gain of 0.03%. The S&P was also pretty flat as it added 0.13% and closed above 7,600 for the first time. The big winner were small caps as the Russell 2000 gained 0.90% on the day. The VIX was relatively flat for most of the day but finished down 1.74% at $15.77.
The Nasdaq opened below its primary daily uptrend support this morning but it rallied back to close above it, putting in a failed breakdown which starts another uptrend for it. Its new primary uptrend (white) will be the first support level to watch tomorrow at about 27,050. It closed at 27,093 today, so odds are it will open above the 27,050 level and if so it will act as support on a pullback. From there on a continuation of the rally, the first resistance to watch will be from today's failed breakdown (teal) at about 27,230. If it can break through this, then its primary uptrend (white) will be in play again at the top of the range at about 27,440. If it breaks through this level as well, the last resistance likely in play tomorrow would be from its prior uptrend (blue) at 27,480.
If the Nasdaq gaps below its primary uptrend support around 27,050 tomorrow then this area will become resistance on a rally attempt. If it opens above it, but breaks below it, then the only other daily support likely in play for tomorrow would be from its prior downtrend (orange) just above 26,600. And if it breaks through its primary uptrend again, it will start another trend going into Thursday's session, but we'll need to see how it finishes to determine the direction of the new trend.
The S&P also put in a failed breakdown today after it broke below its primary uptrend support but also rallied back to finish above it. This starts a new uptrend for it as well. Most of its prior trends remain intact again so there's still a lot going on here and a lot of levels to watch.
The first level to watch for tomorrow will be at 7,600-7,605 from both its new primary uptrend (white) and prior uptrend (green). The S&P closed at about 7,610 today, just above that 7,600-7,605 area so as long as it doesn't gap below it, those levels will act as support on a pullback. From there, the next resistance to watch will be at 7,625 from the retest of today's failed breakdown (red). If it gets through this, the last resistances likely in play for tomorrow would be at 7,657 (orange) and then 7,662 (white - top of the range).
If the S&P gaps below the first support area at 7,600-7,605 then it will be resistance on a rally attempt. If it opens above it, but breaks through this area, then the next support to watch on a pullback will be from its prior uptrend (orange) at about 7,572. If that doesn't hold, then the last daily support would be from its next uptrend (green) at 7,540-7,545. And if it breaks through the 7,600-7,605 level it would mean that it will start a new trend heading into Thursday's session, but we'd need to see how it closes first.
The Russell 2000 broke and closed above its primary downtrend today but it still start a new downtrend for tomorrow. Yesterday I did enter IWM puts, but I exited those for a loss today as it closed too strong above 2,926 which is where its new primary downtrend (white) will be for tomorrow. Since it closed at 2,931, odds are it opens above this new downtrend tomorrow which is why I exited the trade.
The first level to watch for tomorrow will actually be from its prior uptrend (yellow) at about 2,928. As long as it doesn't gap below this, that level will be the first support to watch on a pullback with the next support being its primary downtrend (white) at 2,926. From there on a continuation of the rally, the next resistance level to watch will be at about 2,980 from its prior uptrend again (yellow - top of the range). That's likely the only resistance in play for tomorrow and it will likely start a new trend heading into Thursday's session.
If the Russell 2000 fails to open above the 2,928 (yellow) or 2,926 (white) supports, then those will become resistance on a rally attempt. If it does open above them, but breaks through them, then the next support to watch on a pullback will be at about 2,902 from its prior downtrend (blue). If that doesn't hold, its primary downtrend (white - bottom of the range) would be the next support to watch at 2,863. The last support to watch would be at 2,857 from its prior downtrend again (blue - bottom of the range).
