Tech was the biggest winner today as AI/semiconductor names were flying all day. SOXX and SMH closed up 5% and 4%, respectively. But most of tech participated as the MAGS jumped 3.5% while software also participated as IGV closed up nearly 3%. The Nasdaq closed up 2.26% while the Nasdaq 100 was even stronger, gaining 2.83% as both are just off of the all time highs now. The S&P was also strong, closing up about 1.5% and sits less than 1% away from its all time high. Oil did fall about 4% today, and yields also pulled back with the 10 year down around 4.95%. But despite that, small caps still struggled. The Russell 2000 did post a gain of 0.52% but it closed near the lows of day and was a clear laggard again. What's even more unusual was the strength in the VIX today. Spot VIX closed up 0.4% and was up around 2% at the highs while markets were also at highs.
The Nasdaq got the gap up it needed to open above its primary daily uptrend this morning. It didn't break through it, so it doesn't start any new daily trends for tomorrow. This primary uptrend (white) will be the only resistance to watch, but it's very very far away and won't actually be tested. Instead, it will almost certainly break through this primary uptrend to the downside to start a new trend. It may not happen tomorrow as it can continue to trade within this primary range for now, but it will happen in coming days. For tomorrow though, that support will be around 26,875. If it does break through it tomorrow, then the next support to watch will be from its prior downtrend (blue) around 26,600. If we were to get a larger sell-off, then the last daily support for tomorrow to watch would be around 26,425 from its next downtrend (orange).
The S&P gapped and closed above its previous primary uptrend, starting a new one for tomorrow. It did already get to the top of its new primary uptrend (white) today, so there is room to pullback here within this new uptrend. But first we'll look at resistance. The 7,835 area will be the only resistance to watch on a continuation of this rally tomorrow from both its primary uptrend (white) and prior uptrend (yellow) where these 2 trends intersect. Since there are 2 trends here, both acting as resistance, it will be a big resistance level to watch.
On a pullback, these same 2 trends (white and yellow) will be support at 7,715-7,720 where they also intersect at the bottom ends of the ranges. So this will also be a big support level to watch from both of these ranges. If they don't hold, the only other support that likely comes into play tomorrow would be from its next uptrend (green) at about 7,708.
The Russell 2000 got rejected right around its first resistance (yellow) on the rally attempt today and continues to trade within its big primary downtrend, so it doesn't start any new daily ranges again. This prior uptrend (yellow) will continue to be the first resistance level to watch for tomorrow at 2,880-2,881 again. If it breaks through it and there is a big rally, then the last daily resistance in play would be from its primary downtrend (white) at 2,930-2,935.
On another sell-off in small caps, the only support that will likely come into play will be around 2,825-2,827 from its prior downtrend (purple) and it should continue to trade within its primary downtrend (white) for now.
