Futures gapped lower last night after peace talks failed between Iran and the US as President Trump announced a blockade of the Strait of Hormuz. This also sent oil sharply higher with it rallying over 10%. However, by the open most of the overnight losses had been reversed. Markets opened a little lower but quickly rallied and continued to rip higher into the close. The rally was led by small caps with the Russell 2000 closing higher by 1.52%. The Nasdaq closed up 1.23% and this is extended its win streak to 9 days. The S&P also added about 1% and is now less than 2% away from all time highs. Despite the rally in markets, the VIX finished relatively flat at $19.12 for a loss of 0.57%. While this wasn't much of a decline, it gapped up significantly and was up over 12% at the highs. So even though it wasn't a big decline for the day, it was still a very weak finish near its lows.
The Nasdaq remained well within its primary uptrend so it doesn't start any new ranges again. For tomorrow, the first level to watch will be at 23,150 from its prior sideways range (purple). It closed at 23,183 today so it could potentially gap back below this level in which case it would become resistance, otherwise it will act as support on a pullback. From there its only resistance to watch will be from it primary uptrend (white) at about 23,660 which is another 2% away if we were to get another big rally.
On a pullback, the first support to watch will be that sideways range (purple) if it opens above the 23,150 level. If that level doesn't hold, or if it gaps back under it, then its next support would be at its yellow uptrend at about 22,950. If that doesn't hold either, then its primary uptrend (white) comes back into play from the bottom end of the range at 22,650-22,675 in the event of a big sell-off.
The S&P also remained in its primary range again so it also doesn't start any new ranges going into tomorrow. It did rally right up to its first resistance at 6,885-6,887 into the close. This was the first key resistance I mentioned in the previous update. Since it didn't break through it, that resistance remains valid for now and it will again be the first range to watch with that resistance now at 6,927 for tomorrow. If it breaks through that, its last resistance would be from its primary uptrend (white) at 6,977.
If we get a pullback tomorrow, the first support to watch will be at 6,848-6,850 from its prior uptrend (yellow). If that doesn't hold then its primary uptrend comes into play again from the bottom of its range at 6,766. There would also be more support just below that at 6,753 from its next uptrend (purple).
The Russell 2000 remained well within its primary daily range as well so nothing changes for it going into tomorrow either. The first support to watch will be at 2,668 (purple) which it closed just above today at 2,670. If it gaps below the 2,668 level tomorrow then that purple trend becomes resistance. But as long as there is no gap below it, then it will act as support on a pullback. Its only other trend is its primary uptrend (white) which will be resistance at 2,730 on a continued rally.
If there is a gap below 2,668 tomorrow, then that level will be resistance on a retest. The next support to watch on a pullback would be from its primary uptrend at 2,633. If that doesn't hold then its last support would be from its purple uptrend again from the bottom of that range which will be right around 2,600.
