The rally attempt in the markets today faded again going into the long holiday weekend (markets are closed on Monday for Martin Luther King Jr. Day). The markets essentially all finished flat today with small caps outperforming again as the Russell 2000 gained 0.12% while the Nasdaq closed down 0.07% and the S&P finished down 0.06%. The VIX was also pretty flat, closing up 0.13%. There was a rally attempt in the morning as the Nasdaq was up as much as 0.8% while the Russell and S&P were up 0.66% and 0.3%, respectively. But, for the second day in a row now they were unable to hold their gains.
Looking at the daily setups going into Tuesday, the Russell 2000 still looks the strongest as it is above 2 of its prior daily uptrends which will act as support on pullbacks and it still remains in its current primary uptrend. The first support level to watch on Tuesday will be at 2,672.50 (yellow) with more support just below that level at 2,669.50 (purple) from its 2 prior uptrends. After that, its primary uptrend support (white) will be at about 2,650 if we do get a larger pullback. For now the only resistance level to watch on Tuesday will be at about 2,707 which is also from its primary uptrend.
For the Nasdaq, in yesterday's update I noted that the first resistance level to watch would be at 25,735 from its prior uptrend (purple) resistance. This is exactly where it got rejected at in the morning. The Nasdaq gapped up to 25,710.60 and put in a high a 25,735.48 before it faded the rest of the day. Since it didn't break through that resistance, it remains valid for Tuesday again. On Tuesday, that same resistance will now be up to about 25,790. Its primary channel (white) also remains the same and that will be support at about 25,310.
Lastly, for the S&P, it also remains in its primary uptrend and it didn't break through any support or resistance levels today so it doesn't start any new ranges. So for Tuesday the key support level to watch will be at about 6,906 on a pullback from its primary uptrend support (white). Resistance to watch will be at about 6,990 from its prior uptrend resistance (yellow).
