The bond markets were closed today for Columbus Day and market volumes were very light on the day due to the partial holiday closure. But, semiconductors continued their weakness from last week with SOXX and SMH both closing down over 2%. This put pressure on the Nasdaq which finished down 0.44% while the Nasdaq 100 (NDX) closed down 0.71%. The Russell 2000 also fell 0.45% while the S&P finished pretty flat with a loss of 0.06%. The VIX closed up 2.45% at $15.21, however front VIX futures (VX) were down nearly 2%.
Nothing changed again for the Nasdaq on a daily time frame as it continues to trade within its big primary uptrend (white). The lower end of this range continues to get closer as price chops around, and that will continue to be the only support to watch tomorrow around 26,950. The upper end of this range will also be the only resistance to watch around 28,200 on a rally attempt, but it's very far and very unlikely that it's actually tested. A continuation of the pullback to the bottom end of the range is much more likely at this point.
The S&P also traded in a small range today and didn't break through its primary uptrend, so it also doesn't start any new ranges for tomorrow. The first resistance to watch tomorrow will be at about 7,812 from its prior uptrend (orange) which it closed just below today at 7,807.24. If it gaps above the 7,812 level tomorrow then it would become support. After that, its next uptrend (blue) will be resistance at 7,825-7,827. If it breaks through it, the last resistance potentially in play for tomorrow would be around 7,860 (light purple).
On another pullback, the first support to watch will be from its first uptrend (red) right around 7,807 which is essentially at today's close. So there is risk of a gap below this level tomorrow, if that happens then the 7,807 area would become resistance. After that, its primary uptrend (white) will be support right at 7,800. This is also very close to where the S&P finished today (7,807.24) so there's risk of a gap below it as well. If that happens, the current primary uptrend would be resistance at 7,800 on a rally attempt and the last support that would potentially be in play would be around 7,727-7,728 (peach).
The Russell 2000 gave back all of Friday's bounce after it had bullish divergence on the daily time frame. While this bullish divergence is still there, it would have been good to see some follow through today. Regardless, it remains in its big primary downtrend which continues to be the only daily range in play for now. On another rally attempt, it will be resistance at 2,853-2,855 tomorrow. It will also be the only support level to watch from the bottom end of the range at 2,670-2,675. But this is very far away and is unlikely to be tested.
