On Thursday, heading into the long holiday weekend, tech was notably weak with semiconductors selling off again. The SOXX closed down 5.5% while SMH fell 4.5%. This led to tech underperformance as the Nasdaq closed down 0.8% while the Nasdaq 100 was even worse, losing 1.6%. The Russell 2000 also fell 0.5% while the S&P finished unchanged on the day.
For Monday, not much changes for the Nasdaq as it remains within its primary daily range. The first support level to watch now will be from its primary downtrend (yellow) at about 25,875 which is above Thursday's close of 25,832. If it can gap back above it tomorrow, this level would become support and the next resistance to watch on a rally will be from its primary downtrend (white) at about 26,680. If it can break through that, the last resistance in play will be from its prior uptrend (purple) around 26,725.
If the Nasdaq fails to get the gap above its prior downtrend (yellow) at 25,875 then this area will be resistance on a rally attempt. From there, the only support level potentially in play on a sell-off would be from its primary downtrend (white - bottom of the range) at about 24,975.
The S&P bounced off its prior downtrend support (orange) during Thursday's pullback and remained well within its primary range, so it doesn't start any new trends for tomorrow either. The first resistance to watch will be from its prior uptrend (blue) at 7,614-7,615 and the last resistance to watch will be from its primary uptrend (white) at 7,625-7,630.
On a pullback, the first support to watch will again be from its prior downtrend (orange) which it bounced around on Thursday. This level will be at about 7,423 for tomorrow, just below Thursday's low of 7,427.55. If that doesn't hold this time, the last support in play will be from its primary uptrend (white - bottom of the range) at 7,310-7,315.
The Russell 2000 broke and closed below its prior primary uptrend support, but it still starts a new primary uptrend (white) for tomorrow. Its prior uptrend (orange) will be the first resistance to watch on a rally attempt at about 3,045. If it can break through it, the last resistance potentially in play will be from its primary uptrend (white) at about 3,080.
On a pullback, its new primary uptrend (white) will be the first support to watch at 2,987-2,988. If it breaks through, the next support will be from its prior downtrend (blue) at about 2,978. If that doesn't hold either, the last support will be from this same range (blue - bottom of the range) at 2,930-2,935.
