The NASDAQ 100 was lower due to profit taking overnight as it consolidates some of this summer’s rally. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. However, closes below the 20-day moving average crossing at 1558.32 are needed to confirm that a short-term top has been posted. If September extends the rally, the 62% retracement level of last summer’s decline crossing at 1635.65 is the next upside target.
First resistance is Tuesday’s high crossing at 1632.50. Second resistance is the 62% retracement level of the aforementioned decline crossing at 1635.65. First support is the 10-day moving average crossing at 1609.50. Second support is the 20-day moving average crossing at 1558.32. The September NASDAQ 100 was down 5.00 pts. at 1609.50 as of 6:02 AM CST. Overnight action sets the stage for a lower opening by June NASDAQ 100 when the day session begins later this morning.
The S&P 500 index was slightly lower due to light profit taking overnight as it consolidates some of this summer’s rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If September extends the rally, the 38% retracement level of the 2008-2009 decline crossing at 1044.11 is the next upside target. Closes below the 20-day moving average crossing at 958.66 would confirm that a short-term top has been posted.
First resistance is Tuesday’s high crossing at 1006.40. Second resistance is the 38% retracement level crossing at 1044.11. First support is the 10-day moving average crossing at 988.14. Second support is the 20-day moving average crossing at 958.66. The September S&P 500 Index was down 0.70 pts. at 1000.10 as of 6:05 AM CST. Overnight action sets the stage for a steady to slightly lower opening by the September S&P 500 index when the day session begins later this morning.