This morning we got PPI data which came in cooler than expected after yesterday's cool CPI print. This sent yields lower which help boost markets early on. But, it was mostly the Magnificent 7 stocks that carried the markets today with the MAGS etf closing up 2.3%. AMZN, AAPL, GOOG, MSFT and META all jumped between 3-4% while NVDA closed marginally higher. This was a noticeable rotation from the semiconductor/AI trade into the mega cap tech stocks which have lagged this year. While all of those were up today, the SOXX and SMH etfs both closed lower by 2.2% and 1.6%, respectively. This led to underperformance in the Nasdaq 100 which closed down 0.28% while the Nasdaq composite closed up 0.62%. Meanwhile the S&P and Russell 2000 both gained about 0.4% and the VIX fell another 5% to finish at $15.67.
The Nasdaq continues to inch closer to its primary daily resistance, but it hasn't broken through it yet so nothing changes again for tomorrow. Resistance from this range (white) will be at about 26,600 for tomorrow and it's the only resistance level to watch for now. It's also the only range to watch for support right now, and the bottom of this range is around 24,900 which is about 5% away so it would require a big catalyst to actually get back down there.
The S&P also continues to chop around in its primary uptrend and hasn't broken through it, so nothing changes for it either. Its primary uptrend (white) will again be the only resistance level to watch at about 7,655 tomorrow. If there's a pullback, it will also be the first range to watch for support at 7,340-7,345 with its prior downtrend (yellow) being the last support to watch at 7,325-7,330.
The Russell 2000 broke above its primary daily downtrend resistance today but failed to close above it, giving it a failed breakout. It wasn't a weak finish, but it does start a new downtrend which gives it an added level of resistance now.
The first level to watch will be at about 2,973 which will be the retest of today's failed breakout. The Russell closed just above it today at 2,976, so as long as it opens above 2,973 that retest area will act as support instead. From there, the next resistance to watch will be its prior downtrend (purple) at 2,978-2,979 which it could potentially gap above as well. If that happens then it would also become support and the last resistance would be from its new primary downtrend (white) at about 2,984. It's possible we could see a gap above this as well, in which case the 2,984 becomes support, and it will start a new trend going into Friday's session but we'll first have to see how it closes.
If the Russell fails to open above the first key level at 2,973 (blue - retest of the failed breakout) then it will act as resistance on a rally attempt. From there on a pullback, the first support to watch will be from its prior downtrend (yellow) at about 2,914 with more support from its next downtrend (purple) just below that at 2,910. If that doesn't hold either, its next support would be from its new primary downtrend (white) at about 2,905.
