Technicals February 19 2025

Indices slip premarket as momentum stalls at resistance

• The S&P, Nasdaq, and Russell all finished Tuesday's session slightly higher, while the Dow was largely unchanged. The Nasdaq closed at new all-time highs, while the S&P, Dow, and Russell ended either at or just below their respective resistance ranges. Momentum readings for the S&P, Dow, and Russell are confirming price action, stalling at resistance. However, the Nasdaq is starting to show a negative divergence, with its RSI stalling at resistance while price pushes to new highs. With the Nasdaq as the strongest of the indices and its short-term trend turning higher, it remains to be seen whether it will lead the others higher.

• The Volatility Index (VIX) finished Tuesday's session lower after an initial move higher, closing just above its initial downside support range from 15.30-14.55. A break below this range would likely lead to a test of the 13.95-12.70 range. If buying pressure returns at these levels, equity indices could come under pressure, while a break below these ranges or prolonged consolidation would likely align with higher equity prices.

Key Technical Levels to Watch

S&P 500 Index

• Resistance: the S&P finished Tuesday's session slightly higher, sitting right at the edge of its initial resistance range from 6128-6090. A decisive break above 6128 could open the door for a move higher, with no overhead resistance above.

• Support: our downside support ranges remain unchanged. The first support range comes in from 6025-6005, followed by 5955-5925 below.

• RSI: is confirming price action, trading within its overhead resistance range.

• Trend: the short-term trend remains sideways within the context of a still intact longer-term uptrend.

• Resistance: like the S&P, the Nasdaq closed Tuesday's session slightly higher, pushing into new all-time highs. With no overhead price resistance, a decisive break above Tuesday's high of 22192 could lead to further upside.

• Support: as price moved higher, it formed a new pocket of downside support from 21910-21810. If price moves back into this range and breaks below 21810, it will likely move toward the 21525-21400 range below.

• RSI: is starting to negatively diverge from price, stalling at is overhead resistance range while price pushes to new highs.

• Trend: the short-term trend has shifted higher, aligning with the longer-term uptrend.

Dow Jones Industrial Average

• Resistance: the Dow finished Tuesday's session largely unchanged after recovering from its early session lows. Its overhead resistance range remains the same, with the first and only level coming in from 45070-44785. A move back into this range and a break above 45070 would push the Dow to new all-time highs, with no resistance above.

• Support: the Dow recovered from its early session lows after rebounding off its initial downside support range from 44400-44215. If price moves back into this range and breaks below 44215, it will likely begin making its way toward the 43275-43080 range below.

• RSI: is confirming price action, hovering below its overhead resistance range.

• Trend: the short-term trend has remains sideways within the context of a still intact longer-term uptrend.

Russell 2000 Index

• Resistance: the Russell finished Tuesday's session slightly higher, closing within its initial overhead resistance range from 2295-2280. If price breaks above 2295, it will likely begin moving toward the 2350-2330 range above.

• Support: our downside support ranges remain unchanged. The first support range comes in from 2265-2245, followed by 2192-2170 below.

• RSI: is confirming price action, stalling within its overhead resistance range.

• Trend: the short-term trend remains sideways within the context of a still intact longer-term uptrend.