S&P 500 Index (SPX – 3,122.87)
The large-cap S&P 500 Index (SPX – 3,122.87) suffered a sharp market decline from a high of 3,393.52 (2/19/20) to a low of 2,191.86 (3/23/20). In the process, it declined 1,201.66 points or -35.41%. Just as quick as it has fallen SPX has now gained 931.01 points from its 3/23/20 low or appreciated 42.48% over the past 2-plus months. An uptrend channel has developed from its March 2020 bottom between 3,000 and 3,550. Although the Mar 2020 rally has created a rather steep uptrend the ability to maintain above the bottom of its channel (3,000) and above its 50-day ma (3,005) on pullbacks suggests the continuation of the rally toward next key resistance at 3,137-3,215 (3/3/20 high and 1/31/20 low), and above this to 3,260-3,328.5 (2/24/20 gap down), and then to 3,393.52 (2/19/20 all-time high).
Resistance 1 = 3,136.72-3,214.68 (3/3/20 high and 1/31/20 low)
Resistance 2 = 3,260-3,328.5 (2/24/20 gap down)
Resistance 3 = 3,393.52 (2/19/20 all-time high)
Support 1 = 3,081-3,099 (6/3/20 gap up)
Support 2 = 2,999-3,005 (5/29/20 low, 3/23/20 uptrend, and 200-day ma)
Support 3 = 2,946-2,957 (5/26/20 gap up and 5/26/20 breakout)
Support 4 = 2,865-2,914 (5/18/20 gap up)
Support 5 = 2,767-2,819 (5/13/20 low, 4/21/20 uptrend, 5/4/20 gap up and 50-day ma)
Support 6 = 2,727 (4/21/20 low)
Support 7 = 2,637-2,641 (4/6/20 breakout)
Support 8 = 2,538-2,575 (4/6/20 gap up)
Support 9 = 2,447.49 (4/1/20 low)
Support 10 = 2,301-2,344/2,280.5 (3/24/20 gap up/3/18/20 low)
Support 11 = 2,191.86 (3/23/20 low)
Dow Jones Industrial Average (INDU – 26,269.89)
The blue-chip Dow Jones Industrial Average (INDU – 26,269.89) has also sustained a bear market decline from a high of 29,568/57 (2/12/20) to a low of 18,213.65 (3/23/20). This translates into an 11,354.92 points setback or -38.40%. Since the March 2020 low, INDU has rallied 8,056.24 points or 44.23%. INDU is now challenging key resistance along with its 200-day ma (26,298) and 4/4/20 high 27,102). The ability to surge above this resistance zone can extend the March 2020 rally to secondary resistance at 28,403-28,893 to fill the 2/24/20 gap down. Above this signals a retest of the 2/12/20 all-time high of 29,568.57. On the downside, initial support rises to 25,743-25,907 (6/3/20 gap up). However, it is the 3/23/20 uptrend and the 5/26/20 gap-up breakout at 24,482-25,765 that is now pivotal near-term support.
Resistance 1 = 26,298-27,102 (200-day ma and 4/4/20 high)
Resistance 2 = 28,403-28,893 (2/24/20 gap down)
Resistance 3 = 29,568.57 (2/12/20 all-time high)
Support 1 = 25,743-25,907 (6/3/20 gap up)
Support 2 = 24,482-24,765 (3/23/20 uptrend and 5/26/20 gap up breakout)
Support 3 = 23,648-24,060 (50-day ma and 5/18/20 gap up)
Support 4 = 22,480-22,942 (4/21/20 and 5/14/20 lows and 4/6/29 breakout)
Support 5 = 21,448-21,694 (4/6/20 island reversal gap up)
Support 6 = 20,735 (4/2/20 low)
Support 7 = 19,121-19,649 and 18,917.5 (3/24/20 gap up and 3/18/20 low)
Support 8 = 18,213.65 (3/23/20 low)
NASDAQ Composite Index (COMPQ – 9,682.91)
The over-the-counter NASDAQ Composite Index (COMPQ – 9,682.91) retains its leadership role within the U.S. equities market. After falling 3,206.95 points or -32.60% from 2/19/20 to 3/23/20 it has appreciated 3,051.49 points or +46.02%. It is now trading within striking distance of its 2/19/20 high (9,838.37). The ability to set new record highs would reaffirm its leadership and substantiate the resumption of the COMPQ structural bull trend. However, repeated failures to convincingly surge above its 2/19/29 high can also lead to the start of the next major correction. Trading support moves up to 9,447-9,501 coinciding with the 4/3/20 uptrend and 6/1/20 breakout). Secondary support also rises to 9,251 or the 5/20/20 breakout. Key near-term support remains at 9,018-9,154 corresponding to the 5/8/20 breakout, 5/18/20 gap up, and 5/27/20 low.
Resistance 1 = 9,838.37 (2/19/20 all-time high)
Support 1 = 9,477-9,501 (4/3/20 uptrend and 6/1/20 breakout)
Support 2 = 9,251 (5/20/20 breakout)
Support 3 = 9,018-9,154 (5/8/20 breakout, 5/18/20 gap up, and 5/27/20 low)
Support 4 = 8,705-8,781 (5/14/20 low and 5/5/20 bullish island reversal)
Support 5 = 8,538-8,613.5 (200-day ma, 50-day ma, and 5/4/20 low)
Support 6 = 8,216 (4/21/20 low)
Support 7 = 7,876-7,880 (4/6/20 breakout)
Support 8 = 7,519-7,618 (4/6/20 island reversal gap up)
Support 9 = 7,288.11 (4/3/20 low)
Support 10 = 6,985-7,170 and 6,686.36 (3/24/20 gap up and 3/18/20 low)
Support 11 = 6,631.42 (3/23/20 low)
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