The NASDAQ 100 closed sharply higher on Wednesday due short covering as it consolidated some of this week’s decline. The high-range close sets the stage for a steady to higher opening on Thursday.
First resistance is the 10-day moving average crossing at 1454.02. Second resistance is the 20-day moving average crossing at 1464.03.
First support is Tuesday’s low crossing at 1421.00. Second support is the 25% retracement level of this spring’s rally crossing at 1399.87.
The S&P 500 index closed higher due to short covering on Wednesday as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If September extends this week’s decline, the reaction low crossing at 874.00 is the next downside target. Closes above last Friday’s high crossing at 923.00 would confirm that a low has been posted.
First resistance is the 10-day moving average crossing at 911.69. Second resistance is the 20-day moving average crossing at 920.45. First support is Tuesday’s low crossing at 884.30. Second support is the reaction low crossing at 874.00.
The Dow closed lower on Wednesday as it extended this month’s decline and tested the 25% retracement level of this spring’s rally crossing at 8281. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends this week’s decline, the reaction low crossing at 8221 is the next downside target. Closes above the 20-day moving average crossing at 8601 would temper the bearish outlook in the market.
First resistance is the 10-day moving average crossing at 8521. Second resistance is the 20-day moving average crossing at 8601. First support is today’s low crossing at 8264. Second support is the reaction low crossing at 8221.
