The June NASDAQ 100 closed lower on Wednesday due to profit taking as it consolidated some of Tuesday’s rally. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. If June extends this week’s rally, this month’s high crossing at 1437.75 is the next upside target. Closes below the reaction low crossing at 1336.50 would confirm that a broad top has been posted while opening the door for a larger-degree decline into early-June. First resistance is today’s high crossing at 1428.75. Second resistance is this month’s high crossing at 1437.75. First support is Tuesday’s low crossing at 1342.75. Second support is the reaction low crossing at 1336.50.
The June S&P 500 index closed lower on Wednesday due to profit taking as it consolidated some of Tuesday’s rally. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning neutral signaling that sideways trading is possible near-term. From a broad perspective, June needs to close above 929.00 or below 875.40 to clear up near-term direction in the market. First resistance is today’s high crossing at 913.80. Second resistance is last Wednesday’s high crossing at 923.20. First support is Tuesday’s low crossing at 876.90. Second support is the reaction low crossing at 875.40.
The Dow closed lower due to profit taking on Wednesday as it consolidated some of Tuesday’s rally. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near-term. Closes below the reaction low crossing at 8230 would open the door for a larger-degree decline into early June. Closes above the reaction high crossing at 8591 are needed to renew this spring’s rally and would thereby open the door for a possible test of January’s high crossing at 9088. First resistance is last Wednesday’s high crossing at 8591. Second resistance is January’s high crossing at 9088. First support is the reaction low crossing at 8230. Second support is the 25% retracement level of the March-May rally crossing at 8066.
