Oil jumped over 5% today as tensions continued to flare between the U.S. and Iran with President Trump demanding compensation from Iran in their talks. There were also reports that claimed Iran stated that the Strait of Hormuz would remain closed until the end of Trump's term. This led to the rise in oil prices today, which subsequently led to the rise in yields. The 10 year treasury yield climbed back above 4.7% again today which hurt small caps the most as it increases the odds of rate hikes to combat inflation. The Russell 2000 closed down 0.56% on the day while the Nasdaq fell 0.32%. The S&P was essentially flat with a loss of 0.06%. After nearly hitting the lowest levels of the year on Friday, the VIX bounced back a bit to close at $15.46 for a gain of 3.76%.
For tomorrow not much changes technically as the Nasdaq remained within its primary daily range, so it doesn't start any new ranges for tomorrow. On the initial pullback this morning it bounced right off of its first daily support (purple) around 26,600 that I mentioned in the previous update. It did end up breaking through it later on, but rallied back to close just above it at 26,605. But unless there is a big gap up tomorrow, that prior uptrend (purple) will act as resistance on another rally attempt as it will be right around 26,800. If it does gap or potentially rally to break through it, the last daily resistance to watch will be from its primary uptrend (white) around 26,975.
On a pullback tomorrow, the first support to watch will be from its primary uptrend (white) at 26,375-26,400. If that doesn't hold, the last daily support to watch will be from its prior uptrend (purple - bottom of the range) around 26,350.
The S&P also continued to chop within its primary daily uptrend without breaking through it either way, so it also doesn't start any new daily ranges for tomorrow. The only daily resistance to watch will be from its primary uptrend (white), however it will be even farther away around 7,975 tomorrow and the longer it continues to chop within this range, the less likely it is that it will actually test the top of this range.
On a pullback, its primary uptrend (white) will also be the first support to watch at 7,700-7,705 tomorrow. If it doesn't hold, the next daily two daily supports will be from its prior sideways ranges at 7,645-7,650 (yellow) and about 7,585 (purple).
The Russell 2000 remained within its primary uptrend as well, so it also doesn't start any new daily ranges. The first resistance to watch will once again be from its prior uptrend (yellow) on a rally attempt at about 3,042 tomorrow. If it breaks through, the next resistances potentially in play would be from its next uptrend (purple) at 3,065 and then its primary uptrend (white) at 3,070-3,075.
On a pullback, the next support to watch will be from its prior downtrend (orange) at about 2,982 followed by its primary uptrend (white) at about 2,970. If that doesn't hold, its next support would be further away at 2,930-2,935 from its prior downtrend (blue) in the event of a bigger sell-off.
