The market rally continued again today and the S&P hit a new all time high of 7,026.24, breaking the prior high of 7,002.28 that was set on January 28th. It finished at 7,022.95 for a gain of 0.8% which is also a record closing high for it. The Nasdaq also hit a new all time high today, of 24,026.56, finally breaking above its October 29th high. Tech was the leader again as well as the Nasdaq closed up 1.59%. Small caps lagged today, but the Russell 2000 still posted a gain of 0.3% and it's approaching its all time high of 2,735.10 that was set on January 22nd. Despite the strong rally today, the VIX only closed down about 1% to $18.17 and finished well off of its lows of $17.40.
The Nasdaq finally broke and closed above its previous primary uptrend today which now starts a new uptrend for it. The first level to watch tomorrow will be at 24,085 from the trend it closed above today (now blue). There would need to be a gap above it tomorrow for this level to act as support because the Nasdaq closed at 24,016 today. If it does not gap above this level, then that 24,085 area will act as resistance. If it does gap above it, or break through it, then its next resistance will be from its new primary uptrend (white) at about 24,600.
If there's a pullback, the first support to watch will also be from its primary uptrend (white) at about 23,685. If that doesn't hold, its next support would be pretty far at 23,190 from its prior uptrend (yellow) with more just below that at 23,170 (purple) and 23,080 (blue).
The S&P also broke above its prior primary daily uptrend, but it closed just a hair below it. In yesterday's update I mentioned that its primary resistance would be at 7,023-7,025 today. It hit a high of 7,026.24 and closed at 7,022.95 - just below that uptrend resistance. While it was a very strong finish, it's still technically a failed breakout. However, since it made a higher high it still starts a new uptrend. Now there will be 2 levels of resistance at 7,070-7,075 tomorrow from both its prior uptrend (yellow) and its new primary uptrend (white). So this will be a big level to watch if it gets tested.
Meanwhile if we get a pullback, the first support to watch will be at 6,930 from its primary uptrend (white). If that doesn't hold, then its next support will be at 6,908 (purple) and then the last support to watch would be at 6,858 (yellow).
The Russell 2000 did not break through its primary uptrend today so nothing changes for it going into tomorrow. The first support to watch on a pullback will be from its prior uptrend (purple) at 2,686 and then its primary uptrend (white) would be support at about 2,680. Meanwhile if the rally continues, the only resistance to watch will also be from this primary uptrend at 2,775-2,780.
