Markets continued lower today with the Nasdaq outperforming as semiconductors showed relative strength in today's tape. The Nasdaq 100 closed up 0.21%, however the Nasdaq Composite finished slightly lower with a loss of 0.09%. The S&P and Russell 2000 also posted losses of 0.17% and 0.35%, respectively. Oil did fall over 4% in today's session, but it didn't provide any relief in yields as the 10 year hit a new high before essentially finishing flat on the day. Tomorrow morning we will get PCE data at 8:30 AM ET which will be the next big piece of inflation data.
The Nasdaq continued to trade within its big primary daily range so it doesn't start any new daily ranges for tomorrow. The only resistance to watch will be from the top of its primary uptrend (white) around 27,650 which is just over 3% away from today's close. So it's unlikely that it actually reaches it even if we do get a rally.
On a continued pullback, the first support will continue to be from its prior downtrend (blue) at 26,550-26,575. If it doesn't hold, the bottom of its primary uptrend (white) would be next right around 26,400. If that level doesn't hold either, the last daily support that would likely come into play tomorrow would be from its next downtrend (orange) around 26,300.
The S&P broke below yesterday's primary sideways range that it started and closed back over it again, but it did make a lower low so it starts a new daily downtrend for tomorrow. The first key level to watch will be at its prior uptrend (teal) around 7,675 which it closed below today. The S&P finished at 7,670 today, so it would need to open a bit higher above 7,675 for that prior uptrend to become support again. If it can, its new primary daily downtrend (white) will be the next resistance to watch on a bounce back at about 7,698. If it breaks through it, the last resistance to watch will be from its prior uptrend (orange) at about 7,710.
If the S&P fails to gap back above 7,675 tomorrow (teal) then that uptrend will be resistance on a rally attempt. The next support to watch would be at 7,670 (green) which is right around where the S&P finished today. If it were to open lower tomorrow, then this 7,670 area would also become resistance. After that, on a continued pullback, the last daily support will be from the bottom of its new primary downtrend (white) at about 7,640.
The Russell 2000 continues to trade within its big primary downtrend, so it doesn't start any new daily ranges again. However, it did invalidate its prior downtrend, so now all that is left is its primary downtrend (white). This will be the only range to watch on a daily time frame with resistance at about 2,900 and support at about 2,720. Both of these are over 3% away so it's likely that the Russell continues to trade within this big range for now without starting a new trend.
