The markets were broadly lower this morning after the U.S. threatened to attack Iran again. Oil jumped over 5% yesterday and added another 6% today on the back of the rising tensions which subsequently hit stocks on fear of rising inflation. The rate sensitive Russell 2000 got hit the hardest, closing down 0.88% which was well off of the lows of day where it was down nearly 2%. The Nasdaq and S&P also recovered well off the lows and the Nasdaq actually finished positive with a gain of 0.20% while the S&P finished down 0.28%, but it closed near the highs of the day. With the recovery in the markets, the VIX finished well off of its highs of day but still posted a gain of 4.77% to close at $16.90.
For tomorrow it's much of the same as previous updates as the Nasdaq remains in the middle of its big primary range (white). This is the only range to look at right now with resistance at about 26,650 and support at about 24,950. However, it also has weekly resistance around 26,200 (see the weekly update) which it did get rejected at on Monday.
The S&P also continues to trade within its primary range, so it doesn't start any new trends again. Its primary uptrend (white) will be the only resistance to watch at about 7,635 if there is a rally tomorrow. If there's another pullback, its prior downtrend (blue) will be the first support to watch again at about 7,385. If that doesn't hold, the last support to watch will be from its primary uptrend (bottom of the range) at 7,325.
The Russell 2000 looks a bit different as it did break through its previous primary downtrend, but it rallied back to close above it which was a failed breakdown. It wasn't a particularly strong finish however, and it also made a lower low, so it starts a new trend but that trend is lower.
Its new primary downtrend that was started today will be the first resistance level to watch at 2,986-2,987 on a bounce back tomorrow. If it can break through it, the next resistance will be at about 3,012 from its prior downtrend (yellow) and finally the last resistance will be from its prior uptrend (purple) at about 3,035.
On a continuation of the pullback, the first support to watch will be at 2,944-2,945 from its prior downtrend (yellow) that it closed back above today. This would be a retest of today's failed breakdown. If it doesn't hold, or ptoentially even gaps below it, then the next support to watch will be from its new primary downtrend (white - bottom of the range) at 2,910-2,912.
