The December NASDAQ 100 closed lower on Tuesday as it consolidated some of Monday’s rally. The mid-range close sets the stage for a steady opening when Wednesday’s night session begins trading. Stochastics and the RSI are oversold but are turning bullish signaling that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 2288.45 would confirm that a short-term low has been posted. If December renews this month’s decline, the 75% retracement level of the August-October rally crossing at 2074.93 is the next downside target. First resistance is the 10-day moving average crossing at 2236.55. Second resistance is the 20-day moving average crossing at 2288.45. First support is last Friday’s low crossing at 2135.75. Second support is the 75% retracement level of the August-October rally crossing at 2074.96.
The December S&P 500 index closed higher on Tuesday as it extended Monday’s short covering rally. The mid-range close sets the stage for a steady to higher opening when Wednesday’s night session begins trading. Stochastics and the RSI are oversold but are turning bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 1223.05 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 1198.77. Second resistance is the 20-day moving average crossing at 1223.05. First support is last Friday’s low crossing at 1147.50. Second support is the 75% retracement level of October’s rally crossing at 1123.35.
The Dow closed sharply higher on Tuesday as it consolidated some of this month’s decline. The mid-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 11,811 are needed to confirm that a short-term low has been posted. If the Dow renews this month’s decline, the reaction low crossing at 10,824 is the next downside target. First resistance is the 10-day moving average crossing at 11,620. Second resistance is the 20-day moving average crossing at 11,793. First support is last Friday’s low crossing at 11,231. Second support is the reaction low crossing at 10,824.
