The markets were sold off sharply today as oil continues to rise on increasing tensions between the U.S. and Iran. Oil jumped another 6% today and settled above $92/barrel which is its highest levels since early June. The 10 year yield jumped to 4.713% at the highs, reaching its highest level since January. Tech was the biggest loser today with the Nasdaq closing down 2.15% after Alphabet (GOOG/GOOGL) and Tesla (TSLA) tanked on earnings. Alphabet closed down nearly 7% while Tesla cratered 14.5%. The MAGS etf fell 4.6% today, but Alphabet did guide its capex numbers higher last night which did help semis outperform today. Intel also reported blowout numbers after the close which is also helping semis after hours. The S&P lost 1.21% today and small caps outperformed despite the rise in yields. The Russell 2000 only closed down by 0.67% and all of the indexes did recover off of their lows of day. With the sell-off today the VIX did jump above $20 briefly before pulling back to settle at $18.70 for a gain of 12.4%.
The Nasdaq got very close to its primary daily downtrend support today, but it didn't break. So again it doesn't start any new trends. This downtrend will be the only level to watch again tomorrow with support at 24,825-24,850. It will also be the only resistance level to watch at about 26,550. However that is over 5.5% away so it won't actually get there.
The S&P also nearly touched its primary daily uptrend support today, but didn't quite make it there. Since it didn't break through it, it doesn't start any new trends either. But similar to the Nasdaq, it's getting closer. For tomorrow its primary daily support (white) will again be the first level to watch at 7,364-7,365. If that doesn't hold, the last daily support likely in play would be its prior downtrend (yellow) at about 7,255. The only resistance level to watch will be from the top of its primary uptrend (white) at 7,675-7,680. However just like with the Nasdaq it's extremely unlikely to actually get there as that resistance is about 3.5% away.
The Russell 2000 failed to get the gap up it needed this morning to open above its prior uptrends that I mentioned in yesterday's update. It gapped down and closed well below those supports and started a new primary downtrend (white).
For tomorrow on a bounce back the first resistance level to watch will be from its prior uptrend (green) at about 2,968. After that it will have big resistance at 2,973-2,975 from its prior uptrend (orange), prior downtrend (blue), and its new primary downtrend (white) which is where all three of those trends intersect.
On a continued pullback, the first support to watch will be from its prior downtrend (blue) at about 2,928. After that its primary downtrend (white) would be next at 2,919-2,920. If that doesn't hold, the last daily support likely in play would be its prior downtrend (yellow - top of the range) at 2,893-2,894.
