The SP500 closed down -16.28 or -0.78%. It dipped below the 2079.11 support level intraday, but was able to close above it. The potential near term resistance is 2108.86 with the 2079.11 being the potential near term support. If it breaks below 2079.11, then the 2056.15 could be the next potential support level to watch.
SPX
(click on the chart to enlarge)
The Nasdaq 100 was the worst performer for the day. It closed down -73.73 or -1.60%. It went through the support zone between 4562 and 4546 and filled yesterday’s opening gap. Having broken through the support zone, what use to be the support zone is now becomes the resistance. The intermediate support level could come from the 7/13/15 price gap while the region between 4380-4350 remains to be the potential major support zone.
NDX
The Russell 2000 fared slightly better than the Nasdaq 100, but still ended the session at 1215.85 with a loss of -15.91 or -1.29%. It came down and retested the 127% Fibonacci extension of the ‘H’ pattern. It was able to hold the 1215.42 support. The potential resistance remains to be 1238.76 and the Fibonacci 127% extension near 1207 continues to be the potential near term support. If it fails to hold this support level, then the next potential support is near 1200.74.
RUT
Market breadth continues to deteriorate. Market is still in a pullback mode. Tomorrow is non-farm payroll report day and OpEx day. Therefore, be prepared for elevated level of volatilities. Current market environment still favor the short term traders.
