After a weak finish yesterday, the markets gapped up this morning and held their gains all day finishing near the highs of day. Small caps were the leader today with the Russell 2000 closing up 1.53%. Tech was also strong as the Nasdaq gained 1.29%, led by semis with SOXX and SMH jumping about 5.5% and 4.5%, respectively. The S&P also added 0.89% while the VIX fell 8.5%.
The Nasdaq continues to chop within its big primary daily range which it has been doing for more than a month now. For tomorrow again nothing changes until it breaks through this range one way to start a new one. So its current primary range (white) will be the only support/resistance to watch with support at 24,850-24,875 and resistance at 26,550-26,575.
The S&P also remains the same as it continues to chop around in its primary uptrend (white). This will likely be the only range to watch tomorrow with support at 7,355-7,360 and resistance at about 7,670.
The Russell 2000 gapped above its retest resistance this morning and rallied up to the last resistance level I said to watch out for in yesterday's update at 2,989-2,990. It hit a high of 2,988.43 today and it held pretty much all of its gains, closing at 2,987.39. So while it didn't break through that last resistance it was still a very strong finish for the day. One thing to note is that it also did bounce off its primary weekly uptrend support around 2,940 yesterday (see the weekly update).
With the break and close above yesterday's primary trend, it starts a new primary uptrend (white) for tomorrow. The first resistance to watch will be from its prior uptrend (blue) which it got rejected near today. That will be resistance at 2,997-2,998 tomorrow. After that, its new primary uptrend (white) will be resistance at 3,002-3,003. If it can break through its primary uptrend, the last resistance level to watch will be at about 3,030 from its prior uptrend again (blue - top of the range).
On a pullback, the first support to watch will be at 2,975 from its prior downtrend (green) with its next downtrend (yellow) being support just below that at about 2,970. If that doesn't hold, the last support likely to be in play for tomorrow would be from its new primary uptrend (white - bottom of the range) at 2,957-2,958.
