Markets continued their rally from yesterday with tech being the leader as the Nasdaq closed higher by 1.16%. The S&P added 0.72% while small caps lagged today but the Russell 2000 still posted a gain of 0.64%. The markets did fade in the afternoon off of their highs after there was a report from the Israeli Broadcasting Authority that said the negotiations between Iran and the US were not progressing positively. The VIX briefly turned positive on this but ended the session down 2.8% at $24.54. Overall though it was a relatively quiet session and tomorrow we will be going into a 3 day weekend so it may be quiet again. Friday's big jobs report will come out with the markets closed, so we'll have to wait until Monday to see the reaction.
The Nasdaq gapped above yesterday's downtrend and closes well above it, starting a new daily uptrend going into tomorrow. Support from its new primary uptrend (white) will be at about 21,825 which it closed just above today at 21,840. So it's essentially a toss up for whether it opens above this new uptrend support or not tomorrow. If it does open above the 21,825 level then that will be the first support to watch and the next resistance to watch on another rally will be at about 22,240 from its prior uptrend (purple). If it breaks through that, then its new uptrend (white) will be resistance at 22,400.
If the Nasdaq fails to open above the 21,825 level tomorrow then its new primary uptrend (white) will be resistance on a rally attempt. The next support to watch on a pullback would then be right around 21,200 from its prior downtrend (yellow) that it closed above today.
The S&P also started a new uptrend today as it closed above yesterday's primary downtrend. Its new primary uptrend (white) will be support at about 6,556 tomorrow which it's above now as it closed at 6,575 today. So there would need to be about a 0.3% gap lower tomorrow to open below this level. Assuming it does open above it, then that 6,556 level will be the first support to watch. Its prior downtrend (purple) would be the first resistance to watch at about 6,581. It could potentially open above this level as well in which case it would become support. Its last resistance would be from the new primary uptrend which is right around 6,700. If we do get that gap down tomorrow below its primary uptrend at 6,556, then the next support to watch will be from its prior downtrend (blue) at 6,460. After that its purple downtrend would be in play again from the bottom of that range at 6,430.
The Russell 2000 had the weakest finish and had a failed breakout, but it made a higher high so it still starts a new uptrend. Its new primary uptrend (white) will be support/resistance at about 2,517 tomorrow which it's just below now as it finished today at 2,512. So it will need to gap up a bit tomorrow to remain in this uptrend, if not the 2,517 level becomes resistance. If it does open above it, the next resistance to watch will be at 2,537 from its prior uptrend (purple). If it breaks through that level, the next resistance will be at 2,567 from its next uptrend (blue) and finally its primary uptrend (white) will be resistance at 2,580.
If the Russell opens below its primary support at 2,517 tomorrow then that level becomes resistance and the next support to watch on a pullback would be at 2,504 from its prior uptrend (blue). If it potentially gaps or breaks below this as well, then its next support will be at 2,467 from its prior downtrend (yellow).
