Keep an eye on last bastion tactical supports

Our latest Charted Market Insights (Oct 12) flagged what we view as last bastion tactical uptrend supports for the S&P 500 (SPX), NASDAQ 100 (NDX), and Russell 2200 (IWM). These mark important risk management levels for the indices to hold in order to ward off non-confirmations (aka bearish divergences) across a variety of indicators.

Last bastion tactical uptrend supports are holding so far

• SPX - 6570-6550 with the rising 40-day moving average at 6579

• NDX - 24,186-23,969 with the rising 40-day moving average at 24,155

• IWM - 237.55 with rising 40-day moving average at 238.98

Continuing to hold these supports would help preserve the tactical uptrend structure and show a resilient equity market.

Sustained breaks below these levels would signal a deterioration in near-term market momentum, confirming deeper downside risk signaled by negative divergences, as well as breakdowns, across several important indicators. See our Oct 12 Charted Market Insights for more.

Chart 1: S&P 500 (SPX): Daily chart

Chart 2: NASDAQ 100 (NDX): Daily chart

Chart 3: Russell 2000 (IWM): Daily chart