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 38% retracement level of the March-June rally crossing at 1337.63 is the next downside target. Closes above the 20-day moving average crossing at 1453.96 would temper the near-term bearish outlook in the market. First resistance is the 20-day moving average crossing at 1453.96. Second resistance is last Wednesday’s high crossing at 1496.25.
First support is Tuesday’s low crossing at 1401.25. Second support is the 38% retracement level crossing at 1337.63. The September NASDAQ 100 was up 1.25 pts. at 1409.25. Overnight action sets the stage for a steady to higher opening by June NASDAQ 100 when the day session begins later this morning.
The S&P 500 index was slightly higher due to short covering overnight as it consolidates some of Tuesday’s decline but remains below 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 this week’s decline, the 38% retracement level of the March-June rally crossing at 845.09 is the next downside target.
Multiple closes above the 20-day moving average crossing at 907.23 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 902.76. Second resistance is the 20-day moving average crossing at 907.23.
First support is Tuesday’s low crossing at 875.50. Second support is the reaction low crossing at 873.10. The September S&P 500 Index was up 0.50 pts. at 879.80. Overnight action sets the stage for a steady to higher opening by the September S&P 500 index when the day session begins later this morning.
August crude oil was lower overnight and spiked below the 38% retracement level of the February- June rally crossing at 62.25. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If August extends the decline off last week’s high, the 50% retracement level of the February-June rally crossing at 58.58 is the next downside target. Closes above the 20-day moving average crossing at 68.98 are needed to confirm that a short-term low has been posted.
First resistance is the 10-day moving average crossing at 67.19. Second resistance is the 20-day moving average crossing at 68.98. First support is the overnight low crossing at 61.87. Second support is the 50% retracement level crossing at 58.58.
