The markets continued lower again on the final trading day of the year and this time it wasn't just small caps. IWM did close down 0.75%, but QQQ led the way lower today with it finishing down 0.83%. SPY also finally saw some real weakness with it losing 0.74%. The VIX finished up 4.3%, just below $15. Meanwhile metals took another hit with Silver falling nearly 9% and Gold down 1.25%. Bitcoin was pretty flat but did log another negative month.
On daily time frames, IWM started another downtrend yesterday with support around $246.60 but it failed to hold it again and also closed below it at $246.16. This starts another downtrend for it going into Friday (markets are closed tomorrow for New Year's) with the first support at about $245.35 from its prior downtrend (purple channel). Assuming we don't gap below that, then that level will act as support. If it doesn't hold, then the next daily support to watch will be at about $244.65 from the new daily downtrend. As I've been mentioning in previous updates, small caps have been breaking down and it's virtually a guarantee that it closes below $254 weekly support on Friday to start a new weekly downtrend going into next week.
QQQ finished very weak at the lows today and closed below its prior daily uptrend support. Yesterday I said that if it failed to reclaim the $620.60 level that it would start a new downtrend. This was actually wrong, it still starts a new uptrend here. However it has the same problem as the last two uptrends where it's such a weak finish that it needs to gap up or close above this new support and not make a new low for it to be considered bullish. So a lot of things have to go right on Friday for it for bulls to still be in control at least in the very near term. So this new uptrend support on the daily will be at about $615.35. It finished today at $614.31 and it is still possible there's a gap above $615.35 in which case that area will act as support. If it fails to gap above it, then $615.35 will be resistance. And this time, it will start a new daily downtrend if it closes below that area.
SPY finally saw some weakness today and is now pretty close to its daily uptrend support which will be at about $680.70 for Friday. Weekly support is also pretty close around $679.25. For now SPY remains in the same single daily uptrend that it has been in all month. That won't change until it breaks through it one way.
