The September NASDAQ 100 was sharply lower overnight over increased concerns that that Greece won't fulfill its bailout commitments and a Chinese policy maker warned of cooling growth. Stochastics and the RSI are diverging and are turning neutral to bearish hinting that a short-term top might be in or is near. If September extends the rally off June's low, the May 4th gap crossing at 2686.50 is the next upside target. Closes below the 20-day moving average crossing at 2588.25 would confirm that a short-term top has been posted. Closes below the June-July uptrend line crossing near 2542.24 would confirm that the uptrend off June's low has ended while opening the door for additional weakness near-term. First resistance is last Thursday's high crossing at 2658.00. Second resistance is the May 4th gap crossing at 2686.50. First support is the 20-day moving average crossing at 2588.25. Second support is the June-July uptrend
line crossing near 2542.24.
The September S&P 500 index gapped down and was sharply lower overnight over Greek debt concerns and warnings of a slowdown in China's economy. Stochastics and the RSI are diverging and are turning neutral to bearish warning bulls to
use caution as the rally off June's low might be coming to an end. Closes below the 20-day moving average crossing at 1345.75 would confirm that a double top with the early-July high has been posted. Closes below the June-July uptrend line crossing near 1335.96 would confirm that the uptrend off June's low has ended while opening the door for a larger-degree decline into the end of July. If September extends the rally off June's low, May's high crossing at 1395.50 is the next upside target. First resistance is last Thursday's high crossing at 1375.70. Second resistance is May's high crossing at 1395.50. First support is the 20-day moving average crossing at 1345.75. Second support is the June-July uptrend line crossing near 1335.96.
To receive INO.com‘s Daily Market Analysis & Commentary click here
