Last night Intel (INTC) reported blowout numbers and the stock initially traded higher by around 10% but those gains faded overnight and the stock opened flat this morning before selling off and closing down nearly 8% for the day. This took the rest of the semiconductor sector lower with the SOXX and SMH ETFs closing down 4.4% and 3.27%, respectively. With the rotation out of the semi/AI trade again, the Nasdaq continued to underperform, closing down 0.64%. The Russell 2000 also closed lower by 0.35% while the S&P closed with a marginal gain of 0.05%. The markets did attempt to rally during the day, but they sold off on reports of potential escalation with Iran again. The VIX at the lows of day was down nearly 7%, but after the last day fade in markets, the VIX closed down just 0.64%.
The Nasdaq once again got very close to its primary daily downtrend support but didn't touch it, therefore it doesn't start any new daily trends again. Its primary downtrend (white) continues to be the only range to watch for now. For Monday the support level from this range to watch will be at about 24,825. While resistance from the top of the range won't come into play, that level will be around 26,525.
The S&P also continues to trade within its primary daily range so it won't start any new daily ranges for Monday either. Its primary uptrend (white) will again be the first support level to watch at 7,365-7,370 on Monday. If that does not hold, its next support will be from its prior downtrend (yellow) at 7,240-7,245. The last support to watch would be from its prior sideways range (purple) at 7,150-7,155 which is around 3.5% away from today's close. The only resistance to watch is from its primary uptrend (white - top of the range) which will be around 7,680. However that level is also around 3.5% away and is extremely unlikely to actually be tested.
The Russell 2000 also traded within its primary range today so it doesn't start any new daily trends for Monday either. It got down right to its first support (blue) around 2,928 which was the first key level I mentioned in yesterday's update to watch. It bounced right here, putting in a low of 2,927.49, however it did close near the lows of day at 2,929.99.
For Monday, this same trend (blue) will be the first support to watch and it will now be slightly lower at 2,926-2,927. If it doesn't hold, its primary downtrend (white) will be the next support at 2,914-2,915. If it breaks through, the next and likely last daily support to be in play would be from its prior downtrend (yellow) around 2,877.
On a bounce back, the first resistance to watch will be from its primary downtrend (white) at about 2,968. If it breaks through this level, it will have several more resistances at 2,972 (blue), 2,974 (green), and 2,980 (orange).
