Indexes Await Reaction to Debt Deal

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Includes: DIA, IWM, QQQ, SPY
by: optionMONSTER

What happened on Friday is not likely to have much impact today, given the debt-ceiling compromise reached yesterday. The knee-jerk among global markets will be to rally, as evidenced by an average 1.5 percent gain in U.S. index futures last night.

The U.S. markets are acting in accord, with the futures up on average by 1.5 percent. The issue today will be how long and how far the rally might go.

In light of the overnight futures trading, I am not changing the levels for today. The key is to whether resistance levels are broken on the upside.

If that happens, the following are the next resistance levels to keep in mind. For the Nasdaq 100, next resistance above 2384.50 is at 2418.99. The S&P 500's resistance level above its 10-day moving average is at 1331.48. For the Russell 2000, next resistance would be at 825.53.

Nasdaq 100 (NDX)

First support is at 2342.13. First resistance is at 2384.50.

For the PowerShares QQQ (NASDAQ:QQQ) first support is at $57.46. First resistance is at $58.50.

S&P 500 (SPX)

First support is at 1295.92. First resistance is at 1321.40, its 10-day moving average.

For the SPDR S&P 500 (NYSEARCA:SPY) first support is at $129.63. First resistance is at $132.23, its 10-day moving average.

Russell 2000 (RUT)

First support is at 796.05, its 200-day moving average. First resistance is at 816.32, its 50-day moving average.

For the iShares Trust Russell 2000 Index Fund (NYSEARCA:IWM) first support is at $79.62, its 200-day moving average. First resistance is at $81.62, its 50-day moving average.