The September NASDAQ 100 closed higher due to short covering on Tuesday as it consolidated some of Monday’s sharp decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If September extends Monday’s decline, the 25% retracement level of the March-August rally crossing at 1492.12 is the next downside target. Closes above the 10-day moving average crossing at 1606.10 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 1603.31. Second resistance is the 10-day moving average crossing at 1606.10. First support is Monday’s low crossing at 1561.25. Second support is the 25% retracement level crossing at 1492.12.
The September S&P 500 index posted an inside day with a higher close on Tuesday due to short covering as it consolidated some of Monday’s decline but remains below the 20-day moving average crossing at 989.45. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If September extends Monday’s decline, the reaction low crossing at 964.10 is the next downside target. Closes above the 10-day moving average crossing at 999.03 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 989.45. Second resistance is the 10-day moving average crossing at 999.03. First support is Monday’s low crossing at 975.80. Second support is the reaction low crossing at 964.10.
The Dow closed higher due to short covering on Tuesday as it consolidated some of Monday’s decline. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends Monday’s decline, the reaction low crossing at 9007 is the next downside target. Closes above the 10-day moving average crossing at 9292 would temper the near-term bearish outlook in the market. First resistance is today’s high crossing at 9231. Second resistance is the 10-day moving average crossing at 9292. First support is Monday’s low crossing at 9116. Second support is the reaction low crossing at 9007.
