Today was a Fed day – there was no interest rate announcement, but it was just minutes — basically they share their thoughts with the public.
The market rallied into the announcement (and sold on the announcement – largely making new lows on the day — but not breaking the critical support levels of 2030ES.
All 3 indices — the S&P, Nasdaq, and Russell, held support — only Dow Jones broke support — but only temporarily.
This must be like the 10th time that the 2030/2035 region of support has been tested — and held.
It’s still possible for another test and break tomorrow but at the same time, the market bounced up from 2030 past 2045 — then went back down to test 2035 — and has bounce over 2040 from there. Those two levels — 2030 and 2035 — are critical support levels — so they may be clues for how strong support is.
S&P made new lows — but it held the critical 2030 level — which is where the end of the prior ending diagonal was on May 6 – that Friday.
Nasdaq held 4300 support — and even if it broke it — still had another support level underneath that at 4275.
Russell did not make new lows on the day. Before the Fed announcement, it erased the majority of the fast drop from yesterday. But then the Fed flushed it back down . Even so, market came back over 1100.