Nvidia reported earnings last night and it was a blowout quarter, but the stock finished lower by nearly 2% today. The markets opened lower this morning but ended up rallying on reports of Iran submitting their ceasefire proposal. This also sent oil back below $100 and energy stocks pulled back with XLE closing down over 1%. The rally in markets was led by small caps as the Russell 2000 closed up 0.93% while the Nasdaq and S&P were relatively flat as they posted gains of 0.09% and 0.17%, respectively. The VIX also continued its decline, finishing down nearly 4% to close at $16.76 - its lowest close since February 2nd. Tomorrow we will be heading into the long Memorial Day weekend so market action will probably be muted.

The Nasdaq did not break through any trends from yesterday, so it doesn't start any new trends heading into tomorrow. Its first resistance to watch for tomorrow on a continuation of this rally will be from its prior uptrend (purple) at about 26,625. After that, its primary downtrend (white) will be resistance at about 26,660 and its last resistance (yellow) will be just above that at about 26,675.

If there's a pullback, its primary range (white) will be the first support to watch at about 25,680. If that doesn't hold, the last daily support to watch will be from its prior downtrend (blue) at about 25,515.

The S&P broke and closed above yesterday's primary downtrend which now starts a new primary uptrend (white) for it. The first resistance level to watch tomorrow on a continuation of the rally will be from its prior uptrend (purple) at 7,475 followed by its new primary uptrend (white) at 7,490. If it breaks through these, it will have more resistance from its next two uptrends at 7,510 (yellow) and 7,535 (blue).

On a pullback, the first support to watch will be from its new primary uptrend (white) at 7,405. If that doesn't hold, its next support will be from yesterday's downtrend (teal) that it closed above at 7,396. The last daily support likely to be in play tomorrow would be from its next uptrend (purple) at 7,370.

The Russell 2000 also broke and closed above yesterday's primary downtrend, starting a new primary uptrend (white) heading into tomorrow. Now it already reached the top of this new range with today's rally up to 2,850. And for tomorrow that same uptrend will be resistance at 2,884-2,885 which is the only daily resistance level for it right now. If it breaks through it tomorrow, we'll have to see how it finishes to determine the next trend.

If there's a pullback, this same primary uptrend (white) will be the first support to watch at 2,822-2,823. If that doesn't hold, then its last daily support likely to be in play tomorrow will be from its prior downtrend (blue) that it closed above today. That will be support at about 2,787 tomorrow.