The September NASDAQ 100 closed higher due to short covering on Thursday as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Friday. 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 1336.40 is the next downside target. Closes above the 20-day moving average crossing at 1450.18 would temper the near-term bearish outlook in the market.
First resistance is the 20-day moving average crossing at 1450.18. Second resistance is last Wednesday’s high crossing at 1496.25. First support is Wednesday’s low crossing at 1392.50. Second support is the 38% retracement level of the aforementioned rally crossing at 1336.40.
The September S&P 500 index closed higher due to short covering on Thursday as it consolidated some of the week’s decline. The mid-range close sets the stage for a steady opening on Friday. 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. Closes above the 20-day moving average crossing at 904.08 are needed to confirm that a short-term low has been posted.
First resistance is the 10-day moving average crossing at 898.60. Second resistance is the 20-day moving average crossing at 904.08. First support is Wednesday’s low crossing at 865.50. Second support is the 38% retracement level crossing at 845.09.
The Dow closed higher on Wednesday due to short covering as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends the decline off June’s high, the 38% retracement level of the March-June rally crossing at 7957 is the next downside target. Closes above the 20-day moving average crossing at 8438 are needed to confirm that a short-term low has been posted.
First resistance is the 10-day moving average crossing at 8352. Second resistance is the 20-day moving average crossing at 8438. First support is Wednesday’s low crossing at 8087. Second support is the 38% retracement level of the March-June rally crossing at 7957.
