Market Recap

The S&P 500 index closed lower due to profit taking on Tuesday as it consolidates some of last week’s rally. The mid-range close sets the stage for a steady opening on Wednesday. Despite today’s setback, stochastics and the RSI remain bullish signaling that additional gains are possible. Closes above the reaction high crossing at 923.00 are needed to confirm that a low has been posted. If September renews this month’s decline, the reaction low crossing at 874.00 is the next downside target.

First resistance is today’s high crossing at 926.00. Second resistance is this month’s high crossing at 952.50. First support is the 10-day moving average crossing at 907.52. Second support is last Tuesday’s low crossing at 884.30.

The Dow closed lower on Tuesday due to profit taking as it consolidated some of last week’s rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Despite today’s decline, stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 8579 are needed to confirm that a short-term low has been posted.

If the Dow resumes this month’s decline, the reaction low crossing at 8221 is the next downside target. First resistance is today’s high crossing at 8560. Second resistance is the 20-day moving average crossing at 8579. First support is today’s low crossing at 8393. Second support is last Thursday’s low crossing at 8259.

The NASDAQ 100 closed lower due to profit taking on Tuesday as it consolidated some of last week’s rally but remains above the 20-day moving average crossing at 1469.62. The low-range close sets the stage for a steady to lower opening on Wednesday. Despite today’s setback, stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If September extends last week’s rally, June’s high crossing at 1516.00 is the next upside target.

First resistance is Monday’s high crossing at 1492.50. Second resistance is this month’s high crossing at 1516.00. First support is the 10-day moving average crossing at 1457.00. Second support is last Tuesday’s low crossing at 1421.00.

Comment on this post below.