$SPX Holds Strength as $NDX Nears Resistance and $IWM Extends
S&P 500 Index continues to show strong momentum despite overbought conditions, with key support now defining the trend.
Meanwhile, NASDAQ 100 Index and iShares Russell 2000 ETF remain bullish, but extended setups increase the risk of near-term pullbacks.
1. $S&P 500(.SPX)$
From free fall to anti-gravity. In three weeks, the shift in sentiment has been remarkable. Price action breached the upper Band under overbought conditions.
While indecisive candles precede pullbacks, today’s candle shows conviction. $6,930 is the key support to watch.
2. $NASDAQ 100(NDX)$
A gap-up at the open is coming. Given the overbought oscillator, it's prudent to avoid chasing longs.
Price action remains bullish above $25,256.6, while $25,514.1 is a key daily resistance level worth watching.
3. $iShares Russell 2000 ETF(IWM)$
Momentum continues, don't fight the trend. Anyway stay alert for the Bollinger Band breach + overbought RSI combo, which usually triggers a (healthy) pullback. The gap may act as a magnet soon.
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