The markets rallied once again and this time it was led by small caps with the Russell 2000 closing up 2.11%. It was the only index that hadn't hit new all time highs yet, but it did on Friday with the big rally. The Nasdaq gained an additional 1.52% and extended its win streak to 13 trading days which is its longest winning streak since 1992 and one of the longest in history. The S&P also hit new all time highs again, gaining another 1.2%. Meanwhile the VIX continued its decline on Friday, closing down 2.6% to $17.48. It briefly fell below $17 to a low of $16.87 on Friday which was its lowest level since February 11th.
In the last update I mentioned that the Nasdaq's first daily resistance to watch would be at about 24,290 from its prior uptrend (blue). It gapped above this level on Friday which means it became support. It did retest it and hold as it put in a low of 24,286.47 before continuing to rally. Since it didn't break through it or its primary uptrend, no new trends get started for Monday.
The first level to watch tomorrow will be from this same uptrend (blue) which will be right around 24,500. The Nasdaq closed at 24,468 so it will need to gap up again above 24,500 for that level to be support. If it fails to get that gap up above 24,500 then that level will be resistance. From there, the next support to watch on a pullback will be at 24,280-24,285 from its primary uptrend (white). If the Nasdaq does gap or break above 24,500 and resumes the rally, its only other resistance to watch will be from its primary uptrend (white) at about 25,200.
The S&P broke and closed above its previous primary uptrend which starts a new uptrend for it into Monday's session. However it will also need to gap up again to open above its new primary uptrend (white) as it closed at 7,126 on Friday and its new uptrend will be at about 7,147. If it can gap or break above it, the next resistances to watch will be from its prior uptrends (yellow and blue) at 7,160-7,170. Its last daily resistance would then be from its primary uptrend again at about 7,255 if we get another big rally.
If the S&P fails to gap above its primary uptrend at 7,147 tomorrow, then that level becomes resistance. On a pullback the first support to watch would then be at about 7,025 from its prior uptrend (blue). There would be more supports at 6,968 and 6,950 from its next uptrends (purple and yellow).
The Russell 2000 didn't break through its primary uptrend on Friday so it doesn't start any new trends. It put in a high of 2,793.12 which was just shy of its primary uptrend resistance around 2,800. This primary uptrend (white) will again be the only resistance to watch tomorrow which will be at 2,825. On a pullback, its primary uptrend will also be the first support to watch at 2,726. If that doesn't hold, then there would be more support at about 2,705 from its prior uptrend (purple).
