The markets were in rally mode again at least in the morning as both the S&P and Nasdaq reached new all time highs. However in the afternoon there were reports that Iranian's Parliament Speaker resigned from the negotiating team which sent stocks lower and oil rallying. This report was later denied and markets did recover off of their lows, but still finished the session lower. The Nasdaq closed down 0.89% while the S&P and Russell lost 0.41% and 0.37%, respectively. The VIX finished higher by about 2% at $19.31, but was well off of its high of $21.56 during the sell-off. The VIX has remained elevated despite the markets making new all time highs.

There was a little technical damage done today as the Nasdaq and S&P both have their first bearish divergences on daily time frames. If there is another instance of bearish divergence I would start to get concerned of a looming pullback, but as of now no major supports have been broken.

With the lower open this morning, the Nasdaq failed to open above its primary uptrend support. This 24,650-24,700 area became resistance because of that which is where it got rejected on the rally attempt as it put in a high of 24,664.87. It also closed below yesterday's primary uptrend, but since it made a higher high it still starts a new uptrend. For tomorrow the first support to watch will be at about 23,340 from its prior uptrend (yellow) and then its new primary uptrend (white) will be support at 24,250-24,260. If that doesn't hold and we get another pullback, its last daily support would be from its next uptrend (purple) at about 23,900.

On another rally attempt, there will be resistance from its new primary uptrend (white) at 24,750-24,760. If it can break through this, then its prior uptrends will be resistance at 24,870 (orange) and 24,950 (blue).

The S&P also failed to open above yesterday's primary uptrend so that area became resistance as well. But it also made a new high, just like the Nasdaq, so it also starts a new uptrend here. The first resistance level to watch will now be at 7,122 from its prior downtrend (blue). If it can open above this then that will become support and its next resistance will be from its new primary uptrend (white) at 7,153. If it can break through its primary uptrend then it has further upside to about 7,210 from both of its prior uptrends (yellow and orange).

On a pullback, the first support to watch will be at 7,087-7,088 from its prior uptrend (purple). If that doesn't hold then its new primary uptrend (white) would be next at 7,052. If it breaks through its primary uptrend, then the last support likely to be in play would be from its prior downtrend (blue) again at about 7,035. Those are the daily levels, on a weekly time frame the 7,045-7,050 area remains as support which it bounced off of again today.

The Russell 2000 also opened below its primary uptrend this morning and it got rejected on the retest at 2,796.10 which was the first level I said to watch in yesterday's update if it failed to gap up (2,796-2,797). It closed below that support but just like with the S&P and Nasdaq it still starts a new uptrend here.

For tomorrow its new primary uptrend (white) will be the first support to watch at 2,764-2,765. It closed at 2,775 today, but if it gaps below that 2,764-2,765 area then it will become resistance. If it does open above it, then it'll remain as support and the next resistance level to watch will be at 2,815-2,820 from both of its prior uptrends (blue and yellow). If it does gap or break below its primary uptrend at 2,764-2,765 then the next support to watch would be from its prior uptrend (purple) at 2,741 which is today's low as well.