The current main range is 7333.68 to 7599.38. Its 50% to 61.8% zone at 7466.53 to 7435.18 is the first downside target. Since the main trend is up, buyers are likely to come in on the first test of this area.
A failure to hold 7435.18 will be a sign of weakness and could trigger an acceleration to the downside with 7333.68 the major target.
What to Watch
Futures hit a record. Cash could not follow. That gap is the story. Oil above $90 is doing the damage. The Strait of Hormuz headline is live and it is not going away tonight.
Nvidia gave the market a real catalyst. It does not matter. A chip launch cannot overpower a supply route closure that just repriced energy costs globally. Crude stays bid. Inflation fears stay on. Equities stay capped.
A trade through 7599.38 followed by a lower close is the first signal sellers have taken over. Support at 7466.53 to 7435.18 is the first target. Main trend is still up. Buyers show up on the first test. Lose 7435.18 and 7333.68 comes fast.
More Information in our Economic Calendar.
