Hey what's going on everyone, i hope you're having a great day, i'm matt, and i'm here, to give you another technical analysis update in this video i'll, be covering the three major indices: the nasdaq 100, the russell 2000 and the s p 500.. Beyond highlighting the key areas of support and resistance, i'm going to point out some irregularities. I found in the markets today, if you are interested in this type of content, hit the like button and subscribe to the channel. It really helps with getting this video in front of other people.

Don't forget to turn on your notifications, so you don't miss any of the new videos. Before i begin, i wanted to quickly mention two things. First right, when i started filming a massive thunderstorm started, i'm doing my best to give you the highest quality, audio and video, but i hope you understand if it's not perfect and second before you hear my opinion on where the market's headed i'm curious, what you think, Let me know in a comment below alright: let's get started with some of the biggest news of the day. The nasdaq 100 hit a new high and ended the day up just under 2.5.

For those of you who don't know the nasdaq tracks, just over 100 of the largest companies within the united states, it has a specific emphasis on the technology sector and excludes the financial sector, the etf that tracks. It is qqq, as you can see, on this daily chart. It's had quite a run recently. In fact, the nasdaq 100 is just over nine percent higher from its previous high before the corona virus hit.

If that isn't incredible enough, it's actually rallied over 56 percent. Since it's low in march, as you could see, it's currently caught in this upward channel, which can also be referred to as a bull flag, in other words, if this index breaks below this bottom trend line, there's a good chance, it can return to the scene of The crime at 203, from today's close that would be a decline of just over 21. I don't think this is in the near future or even necessarily imminent. I just want you to have a better understanding of the technical structure.

We're currently dealing with. There are a handful of supports that this market could bounce off of and rally from before the low 200s is hit. There would have to be an incredible amount of weakness in the 230s and around 216 for this bottom target to even be possible to get a better idea of what we should be looking for in the near term. Let me switch over to the four hour chart.

These blue lines represent the same bear flag. We saw on the daily chart, let's zoom, in to get a better look. The first thing i want to point out is the last two times this market broke above the top trend line. It was smackdown pretty rapidly and to such an extent that it was forced to touch the bottom trend line.

If this same pattern were to repeat, we would be looking right around the 248 ish area. If it comes sooner, the target would be lower. If it comes later, the target would be higher. It doesn't have to play out this way, though it could always bounce off a previous support, such as 251 and just below 248..

I would expect a lot of support to be found in this area, because this previous resistance will become a support, and this bottom trend line will help bolster demand. If the bears push the market below this area, the next region, i would be paying attention to is 242, because a lot of support was established there from mid june. The next two obvious targets would be 237 and 231. In my opinion, if the market ever gets to these two levels, it won't be anytime soon, i'm much more interested in these top two levels.

The first one would be a decline of just under three percent and the second one would be a decline just over four percent. So i've been talking a lot about the areas of support, but what's going on with the resistance, i agree it is possible for the market to do something along the lines of bouncing off this trend line and then continuing its way upward. This is obviously possible, but i don't think it's probable because of a discrepancy. I notice in the market today i just added rsi to the chart, and i want to bring your attention to the high on june 10th and then the new high from today.

We have a setup where the market made a new high, but the rsi didn't. This is known as bearish divergence, and it means not, as many people are buying at this high as they did at this high, not always, but this commonly means that the bulls are running out of steam and the market needs to decline to some degree to consolidate, Because of this, i would recommend taking some of your profits off the table, because there is a chance that the market will retract. So that's! What's going on in the nasdaq 100 and as you can see, it's very different than the russell 2000 iwm is the ticker that tracks this index, which monitors 2 000 small cap stocks. It's pretty obvious that there's a large discrepancy between the performance of these 2000 companies and the nasdaq's 100.

from a technical standpoint. The bulls need to get above 146 to be able to test this trend line if they're able to push the market above that, the next area i would be watching would be 153. If the bears win. This particular fight and the russell 2000 is pushed below this trend line.

I would next be watching 136 and then 133 to give you a better understanding of what's going on here's the four hour chart, as we just saw the bulls, need to push the market above 146 to be able to test this trend line if they're able to Break out above that, the next line in the sand would be 153. If we zoom in further, we can see how a bull flag is being formed, the top trend line would be there, and the bottom trend line would be here. These commonly break downward, which means the next reasonable test, would be between 142 and 141. If the bears win that fight, i would expect a lot of support to be at 136 and then that would be followed by 133.

These are the current key levels in the russell 2000, but from the bigger picture. The overall performance is nothing like the nasdaq 100 to tie this all together. Let's take a look at the s. P.

500. Not much has changed on this chart since yesterday it looks like we're still trying to test this upper trend line if the market breaks above that and holds, i would be watching for 323. If the market is rejected at this trend line, there's always a chance. It could bounce off of either of these bottom trend lines, but there's also a lot of support around 306 and 298.

Here's the four hour spy chart, so you could get a better idea of the price action. These blue lines represent the same wedges. You saw on the daily chart if the bulls push above this top one here is that resistance at 323 there's quite a bit of support between 306 and 308, and if that gives you could watch for the high 290s in this video, i've been putting a much Stronger emphasis on the support areas for all three indices, and that's because, in the short term, i think they're more probable than the resistance lines. Now that we've covered the technical levels on the three major indices, i want to quickly give you some bonus content for sticking around this long on the screen now is the daily chart for the vix, which measures volatility and commonly moves in an inverse manner to the Overall market, as you can see here when the market was bottoming out in mid-march, the vix was hitting its peak.

So why am i showing this to you? The answer is pretty simple: the markets went up today, but so did the vix, which is another form of divergence. It looked to be heading to a low of 23.5, but it may have bounced early with this hammer candle now. This could very well be a fluke and it may continue to move downward and test the support, but let me bring your attention to the 200-day moving average. The last time the vix tested its 200-day moving average.

It was followed by an abrupt rally. If this were to happen again, you could expect a drop in all three indices. This upward movement is by no means guaranteed for all. I know it could continue to die out and it might even want to test 18.2, but if june is any indication of what's to come, you should be watching 36.9 and 44.4.

I'm definitely not calling for doomsday. But i want you to be aware of. What's going on, in the background, remember to trade safe by optimizing your risk to reward if you enjoyed the video, let me know by hitting the like button: if you enjoy this type of content subscribe to the channel and don't forget to turn on your notifications, thanks For watching and as always best of luck in the markets.