The NASDAQ 100 was higher due to short covering overnight as it consolidates some of the decline off last week’s high. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If September extends the decline off last week’s high, the reaction low crossing at 1412.00 is the next downside target. Closes above the 10-day moving average crossing at 1460.82 would temper the near-term bearish outlook in the market.
First resistance is the 10-day moving average crossing at 1460.82. Second resistance is last Wednesday’s high crossing at 1496.25. First support is Monday’s low crossing at 1422.25. Second support is the reaction low crossing at 1412.00. The September NASDAQ 100 was up 2.25 pts. at 1443.25 as of 5:51 AM CST. Overnight action sets the stage for a higher opening by June NASDAQ 100 when the day session begins later this morning.
Today’s Trade Triangle’sThe S&P 500 index was higher due to short covering overnight as it rebound off the 25% retracement level of the March-June rally crossing at 882.35. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If September extends last week’s decline, the reaction low crossing at 874.00 is the next downside target. Multiple closes above the 20-day moving average crossing at 910.93 are needed to confirm that a short-term low has been posted. From a broader perspective, the September S&P index appears to be forming a broad head and shoulders top. Closes below 873.10 would confirm a downside breakout of neckline support thereby opening the door for a larger-degree decline.
First resistance is the 10-day moving average crossing at 906.31. Second resistance is the 20-day moving average crossing at 910.93. First support is the 25% retracement level of the March-June rally crossing at 882.35. Second support is the reaction low crossing at 874.00. The September S&P 500 Index was up 1.10 pts. at 896.60 as of 5:57 AM CST. Overnight action sets the stage for a higher opening by the September S&P 500 index when the day session begins later this morning
