Semiconductors fell on Friday, reversing Thursday's gains after the Micron report. The SOXX ETF closed down 5.6% while SMH fell about 4%. However, money flowed back into the hyperscalers like Amazon, Microsoft, and Meta while other beaten down tech sectors like software had a strong day as IGV gained 4%. The Nasdaq still did post a loss of 0.24%, but was well off of the lows of day. The S&P finished flat again, losing just 0.05%. Meanwhile small caps continued to lead but the Russell 2000 was also flat, posting a gain of 0.07%. The VIX finished down 2.5% at $18.41 which was near the low of day after it had been up nearly 10%.
For tomorrow the daily setup on the Nasdaq didn't change as it remains well within its primary downtrend (white). This will be the only range that will likely be in play for tomorrow and possibly this week until it breaks one way. Resistance from it will be at 26,180 tomorrow and if it can break through that, its prior range (purple) will be at about 26,290. Meanwhile support from its primary downtrend will be at about 24,275. Both of these areas are 3.5%-4% away so it's likely the Nasdaq just continues to trade within its primary downtrend for now.
The S&P similarly remains within its primary downtrend and doesn't start any new trends for tomorrow. The first resistance to watch on a rally attempt will be from this primary downtrend (white) at about 7,470. If it breaks through, the last resistance in play will be from its prior uptrend (blue) at 7,515-7,520.
On a continued pullback, its prior sideways range (purple) will be the first support to watch at 7,150 followed by its primary downtrend (white) at 7,125. If that doesn't hold, the last support to watch for tomorrow would be from its prior downtrend (yellow) at 7,100.
The Russell 2000 had a failed daily breakdown on Friday, as it opened below its prior primary uptrend support but rallied back to close above it. This starts a new uptrend for it going into Monday's session. The first resistance to watch tomorrow will be from the retest of Friday's failed breakdown (yellow) which will be at about 3,020. This is above Friday's close of 3,010, so the Russell will need to gap up above 3,020 tomorrow morning in order for that level to act as support. If it can above it, or break through it, the last resistance to watch will be from its primary uptrend (white) at 3,052-3,053.
If the Russell fails to get that gap above 3,020 tomorrow, the retest (yellow) will act as resistance on a rally attempt. On a pullback, the only support to watch will be from its primary uptrend (white) at 2,989-2,990. If it doesn't hold, it will start a new trend but we'll first have to see how it closes to determine the direction of the new trend.
