The NASDAQ 100 closed higher on Monday as it extends this month’s rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends this summer’s rally, weekly resistance crossing at 1783.71 is the next upside target. Closes below the 20-day moving average crossing at 1659.03 would confirm that a top has been posted. First resistance is today’s high crossing at 1733.75. Second resistance is weekly resistance crossing at 1783.71. First support is the 10-day moving average crossing at 1695.20. Second support is the 20-day moving average crossing at 1659.05.
The S&P 500 index closed lower on Monday due to profit taking as it consolidates some of this month’s rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends this summer’s rally, the 50% retracement level of the 2008-2009-decline crossing at 1112.80 is the next upside target. Closes below the 20-day moving average crossing at 1028.69 are needed to confirm that a short-term top has been posted. First resistance is last Thursday’s high crossing at 1070.50. Second resistance is the 50% retracement level of the 2008-2009-decline crossing at 1112.80. First support is the 10-day moving average crossing at 1045.88. Second support is the 20-day moving average crossing at 1028.69.
The Dow closed lower due to profit taking on Monday as it consolidates some of this year’s rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If the Dow extends the rally off this month’s low, weekly resistance crossing at 10338 is the next upside target. Closes below the 20-day moving average crossing at 9567 would confirm that a short-term top has been posted. First resistance is last Thursday’s high crossing at 9854. Second resistance is weekly resistance crossing at 10338. First support is the 10-day moving average crossing at 9675. Second support is the 20-day moving average crossing at 9567.
